Ontario’s new provincial government has launched an initiative intended to improve how the province plans, sites and builds large energy infrastructure projects through a process that “respects communities.” The Ontario Minister of Energy sent a letter to the Ontario Power Authority and the Independent Electricity System Operator May 6 asking them to “develop recommendations for a new integrated regional energy planning process that would focus on improving how large energy infrastructure projects are sited in Ontario.” An official statement explains that, “Regional energy plans will rely on public consultations and municipal input to ensure that Ontario gets siting decisions right the first time – while recognizing that a strong electricity grid requires ongoing investments in clean, modern and reliable energy infrastructure.”
The OPA and IESO are expected to report back to the Minister of Energy by August 1, 2013 with recommendations for a new integrated regional energy planning process. Their proposed plan is also expected to take into account recommendations on energy project siting made by the Legislative Assembly’s Standing Committee on Justice Policy.
The letter to CEOs Colin Andersen and Bruce Campbell calls for “concrete proposals” that:
• detail an approach to regional energy plans, including setting out procedures for development of such plans;
• feature transparent mechanisms for seeking input from municipalities, Aboriginal communities, and other stakeholders in the development of regional energy plans;
• include processes for ensuring that municipalities are engaged in the siting of large energy infrastructure projects; and
• reflect any recommendations with respect to siting large energy infrastructure projects made by the Standing committee on Justice Policy.
On May 30, Minister Chiarelli announced further changes which will increase local control over future large renewable energy projects. In his keynote speech at the CanSIA conference in Niagara Falls, Minister Chiarelli said, “The large project stream in the FIT program will be replaced by a competitive procurement process. Competitive procurements for each individual project will ensure that renewable energy developers work directly with municipalities, before contracts are awarded.”
Minister Chiarelli also announced that the government will:
• Revise the Small FIT program to prioritize projects partnered or led by municipalities.
• Work with municipalities to determine a property tax rate increase for wind turbine towers.
• Provide funding to help small and medium-sized municipalities develop Municipal Energy Plans – which will focus on increasing conservation and helping to identify the most attractive energy infrastructure options for a community.
The changes follow promises in the government’s Speech from the Throne that municipalities would have greater input on the location of energy infrastructure.
The Ontario Energy Board has been working for more than two years on a new framework for co-ordinated regional planning by distributors and transmitters, and recently proposed modifications to its codes to support and implement its work. (See article “Board proposes code changes for regional planning” also in this issue of IPPSO FACTO.) It is considered likely that the Board’s changes will be co-ordinated with other regional planning activities, including any new OPA and IESO recommendations.