Ontario’s Green Energy and Green Economy Act (2009) changed the way in that renewable energy is permitted in the province. What the new Renewable Energy Approval (REA) process effectively does is to combine the requirements of the Ministry of the Environment (MOE) and the Municipal Planning Act together in an attempt to create one seamless, streamlined process. While this change was intended to create a level playing field across renewable energy technologies, it has created a mixed bag of new requirements for various types and sizes of projects.
The new REA process can be challenging to navigate, particularly for developers with projects of differing technologies. A summary of the permitting requirements before and after the REA process for wind, solar and water power technologies are provided below.
Wind: previous process
Prior to the REA process, wind projects over 2 MW and under 200 MW were required to complete an Environmental Screening Report (ESR) under O.Reg. 116/01 “Electricity Projects Regulation”, a regulation under the Environmental Assessment Act. Following the completion of an ESR, municipal zoning and Certificates of Approval (CofAs) were required.
The time required to complete an ESR for a wind project varied greatly depending on the size and scope of the project. The requirements for wind projects were very loose and often open to interpretation. Generally, an ESR could take one to two years, municipal planning would continue following an ESR approval and could last from several months to a year, while CofA applications could take up to a year or more to obtain. Fortunately, in most cases, CofA applications could be completed in conjunction with the municipal planning requirements.
As if this were not enough to bog down any wind developer’s planning and construction schedule, thereby exposing a project to additional costs and risks, the Canadian Environmental Assessment Agency (CEAA) typically requires detailed construction and operation information for all project components and project related components, such as access roads and transmission routes, prior to making a determination if a Canadian Environmental Assessment (CEA) would be required. Typically, this process could be combined with the provincial ESR process by creating one document that met both requirements. Consultation with federal agencies, mainly Environment Canada’s Wildlife Services Branch, early on in the process could help scope out any potential concerns so they could be addressed with the CEAA. This consultation process often reduced any delays on the back end of project development caused by a last minute decision by the CEAA to require a federal EA on a project.
Wind: what has changed?
The REA process has changed the game for wind projects. There are now five classes of wind facilities, and only turbines 3kw or less are exempt from preparing a REA. Any facility over 50kw with a sound power rating of 102db or greater is required to meet an absolute minimum setback of 550m from the nearest receptor (as defined by the MOE). This setback increases depending on the number of turbines and the sound power rating of the machines.
Natural and Cultural Heritage assessments will still be required, with mandatory bird and bat components. Wind developers will no longer be subject to municipal zoning requirements. However, developers are still required to include municipalities in the general consultation process. Another addition for some small scale wind projects is the requirement to consult with Aboriginal communities that may have interests in the area. Developers are required to submit Project Descriptions to the MOE for review, and scoping, following that the MOE will issue a list of aboriginal communities to include in the consultation program.
Developers will also no longer be required to submit CofA applications for their projects. These changes can result in increased upfront work, but if the program is successful in achieving its intent, the REA process will have a positive impact on timelines at the back end, that are most crucial for project developers trying to achieve the Feed-in Tariff (FIT) milestone dates.
The MOE is providing a guaranteed review period of six months commencing upon submission of a complete REA application. Provided the MOE can review and maintain their six month service window, and that the Ministry of Natural Resources (MNR) does not require additional field work, the bulk of a REA for a wind facility could be completed in 15 – 24 months. It is important to note that at this time the crown land site release process for wind projects administered by the MNR is not incorporated into the REA process. Applicant of Record status in the site release process must occur prior to beginning the REA process.
Unfortunately, O.Reg. 359/09, the REA regulation, is not an amendment to the Environmental Assessment Act, and this work will now be completed under the Environmental Protection Act. This change removes all renewable power projects subject to the REA process from the existing federal-provincial environmental assessment coordination agreement. What this means is that a project description will still need to be sent to CEAA, and the potential for a CEA still exists. If a CEA is required, two separate and distinct documents must be submitted. While this item has been brought to the attention of MOE staff, a resolution is not anticipated in the foreseeable future.
Solar: Previous Process
Solar power in Ontario, in most cases, was not subject to the Environmental Assessment Act requirements under O.Reg. 116/01. Typically, these projects were required to obtain a CofA for noise. However, solar facilities were subject to a wide array of municipal zoning requirements. In the months leading up to the REA regulation, these requirements became more complex and began to look like a municipally lead ESR. There was always potential for a solar project to trigger a federal assessment, but this requirement was unlikely to occur in the absence of a funding request.
Solar: What Has Changed?
The permitting process for ground mounted solar PV in Ontario has become more complex, while at the same time much simpler for mounted (roof top or wall mounted) solar PV systems. The REA regulation defines three classes of solar facilities. Class 1 and 2 solar facilities comprising all solar facilities less than 10 kW and roof-top or wall mounted systems of any size are exempted from REA requirements but may still require municipal building permits. Class 3 ground mounted PV installations over 10kw require a REA. These Class 3 facilities, like wind projects, are now required to complete aboriginal consultations and natural and cultural heritage investigations, including consultations with the MNR. Furthermore, several technical reports addressing construction, design and operations, decommissioning, and noise are required and must be made publicly available.
Provided the MOE can review and maintain their six month service window, and that the MNR does not require additional field work, the bulk of a REA for a solar facility could be completed in approximately 9 – 15 months.
Water Power: Previous Process
In Ontario, waterpower has been one of the more difficult renewable technologies to permit under O.Reg. 116/01. In October 2008, the “Class EA for waterpower facilities less than 200 MW” was approved by the MOE. This process, spearheaded by the Ontario Waterpower Association (OWA) and its members, was a major achievement in streamlining the complicated permitting process for these types of projects. Waterpower projects are subject to a large array of regulations from the MOE and MNR, and will most often be required to complete a CEA. In addition to CofAs for noise and sewage works, they are also required to obtain permits to take water. Project timelines to complete the Class EA and permitting process for a hydro-electric facility in Ontario can take from three to eight years.
Water Power: What Has Changed?
Based on extensive consultation between the OWA and its members (ORTECH was actively involved in this consultation process), the MOE and MNR recognized that the REA process in its original state would be poorly equipped to expedite the process for waterpower projects beyond what the Class EA provides. This regulatory conclusion means that for waterpower, the existing Class EA under O.Reg. 116/01 remains in effect, and the federal provincial cooperation agreement still applies.
Summary
The REA process is a notable attempt to streamline the permitting process for most renewable energy projects, but is not without its complexities and challenges. Below is a flowchart comparing the previous and new processes for wind projects in Ontario. ORTECH offers a full range of permitting services with extensive experience in industrial and renewable energy facilities and would be pleased to discuss the application of the REA process to your projects.
Leah Deveaux, B.E.S., Environmental Assessment Specialist, Compliance & Permitting, is currently a policy analyst and environmental specialist at ORTECH Power, with a strong background in environmental policy and legislation. She is responsible for the coordination, preparation and analysis of Feed in Tariff applications for renewable energy projects. ORTECH provides independent engineering and permitting services to developers to help bring their renewable energy projects to commissioning. For more information on how ORTECH can help with the REA process, contact Michael Tingle at