_ BRAMPTONbrampton.ca FlOWef City

Date:

File:

September 14, 2011

L01 Bill 150

A ReportPlanning, Design and

Development CommitteeCommittee of the Council of

The Corporation of the City of Brampton

PLANNING, DESIGN &DEVELOPMENT COMMITTEE

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Subject: STATUS REPORTThe Green Energy & Green Economy Act, 2009, and the RenewableEnergy Approval Process

Contact: David Waters, Manager, Land Use Policy (905-874-2074)

Overview:

• This report provides an update on the Green Energy and Green Economy Actand identifies implications to the City.

• The Green Energy and Economy Act, 2009, received Royal Assent on May 14,2009. The Act and amendments to the Planning Act are now in force, alongwith several implementing regulations.

• Renewable Energy Undertakings (REF's) are facilities that generate electricityfrom renewable energy sources such as wind, solar, bio-energy and water.Projects over 3kW of power do not require municipal land use planning orEnvironmental Assessment approvals.

• The Act implements mandatory consultation with the public, municipalitiesand aboriginal communities for the Renewable Energy Approval (REA) processbefore an application is submitted to the Province for approval.

• Land use compatibility and design issues do not have to be addressed to thesatisfaction of the host municipality in order for a renewable energy project toreceive Provincial approval.

• To date, the City has seen little activity in the area of renewable energyprojects, however, staff is proposing to monitor the development of activity ofthese approvals for a two year period, and to report back to Council with thefindings.

• Staff is also seeking direction to investigate opportunities for applying aconsultation fee for the review of applications for renewable energyundertakings.

RECOMMENDATIONS

1. THAT the report from David Waters, Manager, Land Use Policy, Planning,Design and Development, dated September 14, 2011, to the Planning, Designand Development meeting of October 17, 2011, re: The Green Energy & Green

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Economy Act, 2009 and the Renewable Energy Approval Process (File: L01Bill 150) Status Report, be received;

2. THAT the Building Division be directed to provide a report to City Council on theactivity of building permits issued for renewable energy projects, subject to therequirement for issuance of building permits, after a two-year monitoring; and,

3. THAT City staff be directed to investigate opportunities for implementing amunicipal consultation fee associated with the requirements of the Green Energyand Green Economy Act to review applications pertaining to renewable energyundertakings, that staff report back to a future meeting of City Council, and thatthe City's Fee By-law be revised accordingly.

Background

The Green Energy and Green Economy Act, 2009.

The Green Energy and Green Economy Act, 2009 addresses energy efficiency ofhomes, appliances and products; energy conservation and demand management; thepromotion of renewable energy technologies; and made amendments to twenty otherActs, including the Environmental Protection Act and the Planning Act

The Green Energy and Green Economy Act, 2009 received Royal Assent on May 14,2009. Regulations and tools needed to implement the legislation were introduced inSeptember 2009. Renewable Energy Undertakings or REF's, are facilities thatgenerate electricity from a renewable energy source such as wind, solar, bio-energyand water. Included within the Act are details for implementation and regulations for thenew Renewable Energy Approval (REA) process.

Influence of the Act

A total of twenty one existing Acts were affected with the introduction of the GreenEnergy and Green Economy Act, 2009 (see Appendix A for a summary of the amendedActs). The most notable Acts amended include:

• The Planning Act,•The Building Code Act,•The Environmental Protection Act,• The Electricity Act,•The Ontario Energy BoardAct, and• The Environmental Assessment Act

The Green EnergyAct and Green Economy Act, 2009 has a number of regulatorychanges and policies that help support a green economy and protect the environment.

Some notable components of the Act are discussed below.

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Renewable Energy Approval (REA) Process

The Act amended the Environmental Protection Act to implement requirements forobtaining REA for certain classes of renewable energy undertakings. The approvalprocess is now streamlined for renewable energy projects. Renewable Energy projectsare no longer subject to the Environmental Assessment Act However, an applicationfor an REA will require approval from the Ministryof the Environment.

Furthermore, certain classes of renewable energy generation facilities and projects areexempt from all municipal planning approvals. Land use planning approvals or permitsunder Official Plans, zoning by-laws, site plan control by-laws, interim control by-laws,plans of subdivision, or demolition control by-laws normally required under the PlanningAct now cease to apply. These issues will be dealt with at the Renewable EnergyApproval stage and under new provisions in the Environmental Protection ActRegulations relating to setbacks to residences and environmental features normallydetermined by the municipality are now established by the Act and applied consistentlyacross the Province. Approvals required through Conservation Authorities are limited topollution control, flooding and erosion. However, in cases where the type ofundertaking does not fall under the REA projects can potentially be regulated bymunicipalities.

Regulations relating to planning, design and buffer zones are determined by theProvince and set out in the regulations. Municipalities and Conservation Authoritieshave been identified at the beginning of the approvals process as part of the pre-submission consultation process. Different types of renewable energy facilities arecategorized by class and therefore have unique requirements. These different types offacilities are described below:

Wind Generation Facilities

A wind turbine generating less than or equal to 3kW of power does not require an REA.Ifthese facilities are ground mounted, a building permit is not required. However, windturbines attached to a building require a building permit. Wind facilities generating morethan 3kW but less than 50kW require an REA, however, there are no minimum setbackrequirements for these facilities, and they are not subject to the consultationrequirements of the Act.

Facilities generating 50kW and over require an REA and noise study. A minimum 550metre setback from residences is required. The setback does not apply if the soundlevel of the facilities is less than 102 decibels.

Large scale wind turbines are required to be setback equal to the height of the windturbine excluding the length of the blades.

Solar Energy Facilities

Roof top or wall-mounted solar facilities of any size are exempt from the requirement toobtain an REA and all other certificates of approval and permits issued by the Ministry,however a building permit is required. Small scale ground mounted panels less than orequal to 10kW do not require an REA. Ground mounted solar facilities over 10kWrequire an REA, and a noise study.

Bio-Energy Facilities

Renewable energy facilities that generate electricity through thermal treatment,anaerobic digestion, biofuel combustion (e.g. biodiesel), and biogas require an REA.The requirements that must be met to obtain an REA from bio-energy facilities varydepending on the project location.

Water Power Facilities

Water power facilities do not require an REA but will continue to require the relevantenvironmental assessment and approvals under the Ministries of the Environment andNatural Resources.

Application Requirements

Before an application is received by the Ministry of Environment, the proponent mustcomplete all necessary studies and consult with the public, municipalities, appropriateMinistries and Aboriginal communities. At this stage, a municipality has the opportunityto provide comments on the renewable energy project.

The Ministry of Environment provides applicants with a form that outlines what needs tobe addressed by the host Municipality. A proponent is required to hold two communitypublic meetings. Landowners within 120 metres of the proposed project are required tobe notified. The applicant then provides a completed submission to the Ministry ofEnvironment for approval. The approval must be complete within 6 months. FollowingMinistry of Environment approval, a third party can appeal the decision through theEnvironmental Review Tribunal within 15 days of posting the Ministry approval on theEnvironmental Registry. An appeal may be based on grounds of serious harm to humanhealth or serious or irreversible harm to plants, animals and the environment.

Feed-ln-Tariff (FIT) Program

A notable component of the Act are the amendments to the Electricity Act, 1998, toallow the Minister of Energy to direct the Ontario Power Authority to develop a feed-intariff program to provide for long-term energy rates for energy produced by renewableresources (including wind, water, biomass, biogas, biofuel, solar, geothermal, tidalforces and other sources). This feed-in tariff program is intended to provide a market-

viable price for development of both community-based and large commercial renewableenergy projects.

Municipalities can develop an REF and generate up to 10 megawatts of electricity. Thegenerated electricity from the municipalities' REF can be used to power their own facilityor collect revenue by participating in the FITprogram and selling the electricity to thegrid.

Energy Conservation Culture

The Green Energy and Green EconomyAct, 2009, is intended to help develop a cultureof conservation through a variety of regulations. The Act will remove any restrictionsestablished in a municipal by-law, condominium by-law or other encumbrances on realproperty that prevent the use of services and technologies that promote energyconservation. The Minister will be able to designate renewable energy projects asexempt from municipal by-laws.

The Act requires that public agencies, including municipalities, establish and maintainenergy conservation and demand management plans. Public agencies may be requiredto consider energy conservation and energy efficiency in their acquisition of goods andservices. Furthermore, the Building Code Act will be amended to make energyefficiency a standard component within Ontario's Building Code.

Provincial Policy Plans

The provisions in provincial plans such as the Oak Ridges Moraine Conservation Plan,the Green Belt Plan or the Lake Simcoe Protection Plan must be met in conjunction withthe location requirements for Renewable Energy Undertakings as set out in the GreenEnergy and Green Economy Act.

Implications to the City of Brampton

In reviewing the Act, City staff has identified the following implications:

• Renewable energy undertakings can no longer be regulated by municipal land useplanning approvals. This could result in the City's vision and the impact ofrenewable energy projects on local infrastructure, natural and cultural heritage, airand water quality and emergency services not being addressed to the satisfaction ofthe host municipality, however it should be noted that a renewable energy projectthat is a building, as defined in the Building Code Act, will require a building permit;

• The Act will allow renewable energy projects to proceed and may only be stopped ifthere are safety and environmental concerns. Land use compatibility and designissues do not have to be adequately addressed to the satisfaction of the hostmunicipality for renewable energy projects to receive approval from the Province.Municipalities are to be consulted as part of the approval process for energy projectsbut are not recognized as the approval authority under the Act;

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• The Province will determine renewable energy projects setbacks in accordance withthe project type, size and location, where applicable;

• An REA requires approval from the Ministry of Environment but projects are nolonger subject to the EnvironmentalAssessment Act;

• Municipalities will be required to prepare and implement a Conservation DemandManagement Plan which will include a summary of their annual energy consumption,description and forecast of expected results of current and proposed activities andsummary of the progress and achievements. The preparation of an ConservationDemand Plan will impact staffing and financing resources and implementation;

• All new municipal building construction could be required to maintain a minimumenergy conservation and material standard;

• Applicants are required to consult with the host municipality prior to submitting anapplication to the Province. This will impact staff resources because at the moment,the City's Fee By-law does not include an item that enables the City to charge a feefor plan review;

• The Ontario HeritageAct is not affected by the Green Energy and Green EconomyAct Consequently, potential REA's in a designated heritage property or heritageeasement area could require written authorization of a municipality prior to pursuingan REA.

The Act also has the effect of requiring public agencies to consider energy conservationand energy efficiency when acquiring goods and services and when making capitalinvestments. Staff advises that this requirement is generally consistent with the City'sPurchasing Policy.

To date, the Act has had minimal impact on the amount of new renewable energyprojects constructed within the City of Brampton. Since November 2010, a total of sevenbuilding permits have been issued for renewable energy projects related to solarphotovoltaic facilities, which are generally roof-mounted, and typically form part of amore comprehensive project. Since the passing of the Act, the Building Division has notissued building permits for any known wind turbines and bio-energy facilities.

The Building Division is proposing to monitor the number of new renewable energyfacilities within the City of Brampton for the next two years, and to report back to afuture meeting of City Council with the findings.

Municipal By-laws

The Green Energy Act did not make amendments to the MunicipalAct, 2001, withregards to renewable energy projects. The Municipal Act, 2001, allows municipalities topass by-laws with respect to health, safety and well being of residents. Under Section

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129 of the Act, municipalities are able to regulate with respect to noise, vibration, odour,and dust and impose conditions which may include the submission of plans.

Although any by-laws implemented under the Municipal Act, 2001, are not to prohibitaproject or conflict with the Green Energy Act and Renewable Energy Approval process,City staff has investigated opportunities for regulating Renewable Energyfacilities underthe Municipal Act. One potential option that was identified was the potential to applyvarious siting and set back requirements to those renewable energy projects requiringbuilding permits. Set back requirements could be utilized in instances where theproposed location of a renewable energy facility pose negative impacts on existingsurrounding uses, where such setbacks do not conflict with the Green Energy Act. Atthis time, staff is not proposing to pursue this option due to the low number of approvalsissued by the City to date.

Under the Municipal Act, opportunities also exist for recovering costs associated withthe mandatory consultation requirements established by the Green Energy and GreenEconomy Act. Some municipalities have begun to apply consultation fees. Currently, theRegion of Halton charges a fee for the review of applications related to renewableenergy projects.

Opportunities exist for Brampton to apply such a fee to applicants seeking Provincialapproval on new undertakings. Therefore, it is recommended that staff exploreopportunities for applying consultation fees associated with the review of applicationsfor renewable energy projects and report back to City Council. This will require the Cityof Brampton's Fee By-law to be revised to implement a change to cover resource costsresulting from the review of applications subject to the Green Energy Act.

Conclusion

The Green Energy and Green Economy Act, 2009 is intended to support thedevelopment of renewable energy projects in an effort to excel Ontario as a leader inrenewable energy and energy conservation.

The Act uploads the municipal responsibilities to a provincial regulatory body that doesnot have the benefit of the local community vision and knowledge. This may negativelyimpact land use planning and environmental management policies already in force atthe municipal level. Although municipalities have no approval authority for RenewableEnergy Facilities, the approval process requires proponents of most renewal energyundertakings to consult with municipalities and that public consultation (a minimum oftwo public meetings) occur before an application is submitted to the Province forapproval.

Staff is seeking direction to continue to monitor the impacts of the Green Energy andGreen Economy Act to the City of Brampton and to report back to a future meeting ofCity Council. Staff also seeks direction to explore opportunities to amend the City's FeeBy-law to allow for a consultation fee to be applied in response to the municipalconsultation requirements of the Act.

Respectfully submitted:

Adrian SmitK,'MCIP,/RPPDirector, Planning Policy andGrowth Management

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n^XJohri B. Corbett, MCIP, RPPCommissioner, Planning, Designand Development

Attachment:

Appendix A: Synopsis of Amended Statutes

Authored by: Daniella Balasal

Original signed by Original signed by

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Appendix A: Synopsis of Amended Statutes

Schedule B: Electricity Act, 1998

Amendments to the Electricity Act, 1998 include:

Removes the requirement for the establishment of the Conservation Bureau withinthe Ontario Power Authority (OPA).Minister is provided with additional authority to issue directions to the OPA toundertake a request for proposal, any other form of procurement solicitation or anyother initiative that relates to the procurement of electricity supply and capacity.Permits the Minister to direct the OPA to establish measures to facilitate the

participation of aboriginal peoples in the development and implementation ofrenewable energy generation facilities and transmission and distribution systems.The Independent Electricity System Operator (IESO) is required to calculatepayments in accordance with the regulations for classes of market participants.Permit the Minister to direct the OPA to develop a feed-in tariff program thatprovides standard program rules, standard contracts and standard pricing regardingclasses of generation facilities differentiated by energy source or fuel type.Requires transmitters and distributors to connect generation facilities to theirtransmission systems or distribution systems if specified criteria are met.Requires distributors, transmitters, the OPA and the IESO to provide prescribedinformation about the distribution system's or transmission systems ability toaccommodate generation from a renewable energy generation facility.Require transmitters and distributors to give those renewable energy generationfacilities that meet prescribed requirements priority access to their systems.

Schedule C: Ministry of Energy Act

The Ministry of Energy Act is amended to the Ministry of Energy and Infrastructure ActThe objectives of the Ministry are to include references to infrastructure, growthplanning, renewable energy and energy conservation.

Schedule D: Ontario Energy Board Act, 1998

The Board's objectives are amended with respect to electricity to include the promotionof conservation of electricity, the facilitation of investments to implement smart grids andthe promotion of the use and generation of electricity from renewable energy sources.

The Ministry may:

• Issue directives to the Board that contain conservation and demand managementtargets to be met by distributors and other licensees.

• Require that a distributor meet all or part of its conservation target by contractingwith the OPA to meet the target through programs offered by the OPA; and,

• Issue directives to the Board relating to the establishment, implementation orpromotion of a smart grid for Ontario.

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Schedule E: Clean Water Act, 2006

This schedule amends the Clean Water Act to make changes consequential to theamendments made to the Environmental Protection Act (EPA). The amendmentsrequire that assessment reports be prepared to quantify the existing and anticipatedamounts of water taken by a renewable energy project.

Schedule F: Environmental Bill of Rights, 1993

Amendments require the Environmental Commissioner to report annually to theSpeaker of the Assembly on energy conservation concerning electricity, natural gas,propane, oil and transportation fuels. The report would be required to:

• Describe the results of initiatives in Ontario to conserve energy in the previousyears;

• Describe the progress in meeting targets established by the government ofOntario to conserve energy;

• Identify Act, regulations, and policies of Ontario or Canada that result in barriersto the conservation of energy; and

• Identify by-laws and policies of municipal councils in Ontario that result inbarriers to the conservation of energy.

The Environmental Commissioner is required to report annually to the Speaker of theAssembly on the progress of activities in Ontario to reduce emissions of greenhousegases. The report will include a review of any annual report on greenhouse gasreduction or climate change published by the Government of Ontario during theprevious year.

Schedule G: Environmental Protection Act

The amendments to the EPS would combine approval requirements under the EPA andthe OWRA into a single new renewable energy approval.

• Adds "renewable energy approval" to the definition of "regulated person"• Add definitions for "renewable energy generation facility" from the Electricity Act,

1998 and "renewable energy project" from the Green Energy Act, 2009.• Defines "environment" as set out in the Environmental Assessment Act which

includes social, cultural or economic conditions that influence human life orcommunities.

• A person engaging in a renewable energy project is exempt from specified approvaland permit requirements under the EPS and OWRA and from requirements set outin any prescribed provisions under the other Acts. Thus, only one Ministry of theEnvironment approval would be required for renewable energy projects.

• An application for the issue or renewal of a renewable energy approval be preparedin accordance with the regulations and submitted to the Director.

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• The Director is authorized to issue or renew or to refuse to issue or renew a

renewable energy approval if doing so would be in the public interest.• Director has the authority to impose terms and conditions on a renewable energy

approval, to alter the terms and conditions, to impose new ones and to suspend orrevoke a renewable energy approval.

• A renewable energy approval shall not authorize a person to take water contrary tothe OWRA or transfer water out of the Great Lakes- St. Lawrence River Basin, theNelson Basin or the Hudson Bay.

• Permits the Ministry of the Environment to issue written policies in respect ofdecisions made about renewable energy approvals and shall be consistent withthese policies.

Schedule H: Ontario Water Resources Act

The amendments to the Ontario Water Resources Act are consequential to theamendments to the Environmental Protection Act to reflect the introduction of the

renewable energy approval.

Schedule I: Co-operative Corporations Act

Amendments authorize the incorporation of renewable energy co-operatives. Arenewable energy co-operative is a co-operative whose articles restrict its business togenerating and selling electricity produced from renewable energy sources.

Schedule J: Building Code Act, 1992

The proposed amendments clarify that the purpose of the establishment of standardsfor "conservation" includes energy conservation.

The Act is also amended to require that:

• Reviews of the Building Code, with reference to standards for energyconservation, be initiated at five year intervals, and

• An advisory body - the Building Code Energy Advisory Council - be establishedwith a mandate to advise the Minister of Municipal Affairs and Housing on theBuilding Code with reference to standards for energy conservation.

Schedule K: Planning Act

• Adds definitions of "renewable energy generation facility" and "renewable energyproject",

• Includes a new exception from the subdivision and part lot control restrictions of theAct for leases of up to 50 years for the purposes of renewable energy generationfacilities and renewable energy projects.

• Exempts renewable energy generation facilities and renewable energy projects fromdemolition control by-laws, by-laws, orders and agreements including zoning by-

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laws, site plan control by-laws and interim control by-laws; and the developmentpermit regulation.

Schedule L: Ministry of Natural Resources

Conservation Authorities Act

If a person requests permission under Section 28 of the Act for development related toa renewable energy project, a conservation authority or the executive committeeappointed by a conservation authority is not allowed to refuse the permission or toimpose conditions on the permission unless it is necessary to do so to control pollution,flooding, erosion or dynamic beaches.

Ministry of Natural Resources Act

The Minister may require that a proponent of a renewable energy project provide to theMinister the information or studies that the Minister considers necessary before theMinister issues a permit or approval.

Niagara Escarpment Planning and Development Act

The definition of "utility" is amended to include renewable energy projects in referenceto the generation, transmission and distribution of electric power.

Provincial Parks and Conservation Reserves Act 2006

Presently, facilities for the generation of electricity are allowed to be developed inprovincial parks and conservation reserves for use within communities that are notconnected to the lESO-controlled grid if the Lieutenant Governor in Council approves.Amendments will give the Minister of Natural Resources approval authority.

Public Lands Act

A person who has entered into an agreement, including a lease, a license or aneasement, with the Crown under the Public Lands Act or to whom a permit to occupypublic lands has been issued under the Public Lands Act is required to comply with theagreement or permit, as the case may be. It is an offence to contravene therequirement. A court that convicts a person of the offence can make a complianceorder.

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