This consultation was open from:
October 13, 2017
to November 27, 2017
Decision summary
We have made changes to Ontario Regulation 245/97 to address compressed air energy storage activities in underground salt caverns.
Decision details
The changes are being implemented by an amendment to Ontario Regulation 245/97 Exploration, Drilling and Production and will take effect October 1, 2018. The amending regulation, Ontario Regulation 237/18, was filed on April 11, 2018. The regulation adopts the Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0.
Effects of consultation
Comments were received from a variety sources including members of the public, industry stakeholders, and Indigenous communities.
In addition to commenting on the regulation proposal, a number of concerns were raised about the compressed air energy storage project in Goderich, Ontario. Specific concerns included impacts to groundwater, endangered species, air quality and noise, and the lack of public engagement to date. Concerns were also raised about the lack of regulation for this project.
The ministry has been working with the company to ensure the project is aligned with the relevant standards so that it is carried out in a safe and responsible manner. Once the new regulation becomes effective, the project will require a well licence and injection permit under the Oil, Gas and Salt Resources Act.
Some comments also suggested that compressed air energy storage projects should follow the same or similar approval process as natural gas storage areas. Such an approach is out of scope as the Oil, Gas, and Salt Resources Act; does not provide the authority to do this.
The following changes were made in response to comments:
Porous rock reservoirs
In response to concerns that the proposed approach for reservoirs could discourage development of this sector, further work will be undertaken on the subject of compressed air energy storage in porous rock reservoirs before addressing this activity under regulation.
Protection of confidential information
In response to concerns about requirements to disclose business-confidential information when sharing project details with the public, applicants will be allowed to keep certain information confidential. New provisions will allow applicants to redact the same or similar information that would be required to be kept confidential under the Freedom of Information and Privacy Protection Act. Applicants will require ministry approval before redacting any information from their public documents.
Comment period
In response to comments about the length of the comment period on applications, the comment period has been revised to 60 days.
Effective date
The regulation will come into effect on October 1, 2018. This will give the industry adequate time to learn about and comply with the new requirements.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Connect with us
Contact
Andrew MacDonald
300 Water Street
Peterborough ,
ON
K9J 8M5
Canada
Original proposal
Proposal details
Updates
This notice was originally published on October 13, 2017.
It was updated on January 3, 2018 to advise that a regulation will not be in effect on January 1, 2018, as the proposal is still being considered. No additional opportunity for comment is being provided for at this time.
Description of regulation
Last spring, the Oil, Gas and Salt Resources Act was amended by the Ontario Legislature to allow other underground geological storage activities, including compressed air energy storage (CAES) to be regulated under that framework by prescribing projects and activities in the regulation under the act. Until regulation changes are made, the changes have no effect.
CAES is a means of storing electrical energy for later use. In the context of the proposed changes, CAES refers to the process of compressing and injecting air into solution-mined salt caverns or porous rock reservoirs, storing it, and then withdrawing the air for the purpose of generating electricity.
The proposed changes would bring the wells and subsurface activities associated with CAES projects using solution-mined salt caverns and porous rock reservoirs for storage under the Oil, Gas and Salt Resources Act framework, and include the establishment of an application process and standard operating requirements for subsurface activities associated with salt caverns CAES projects, providing greater clarity and certainty for the energy storage industry, local and Indigenous communities, and the public.
Details on the proposed changes are outlined in the proposal document linked on this page.
The changes are proposed to take effect on January 1, 2018.
Purpose of regulation
Regulation under the Oil, Gas and Salt Resources Act framework will ensure that the CAES activities associated with wells and subsurface areas would be conducted in a safe and environmentally sound manner, and be designed, operated, decommissioned and abandoned in accordance with relevant standards.
Other information
Oil, Gas and Salt Resources Act
Public consultation
This proposal was posted for a 45 day public review and comment period starting October 13, 2017. Comments were to be received by November 27, 2017.
All comments received during the comment period are being considered as part of the decision-making process by the Ministry.
Please Note: All comments and submissions received have become part of the public record.
Regulatory impact statement
The anticipated environmental consequences of the proposal are positive as the proposed amendments would provide regulatory oversight of subsurface CAES activities using wells to access salt caverns and porous rock reservoirs, ensuring that the activities associated with wells and subsurface activities would be conducted in a safe and environmentally sound manner, and designed, constructed, operated, maintained, decommissioned and abandoned in accordance with relevant standards.
The anticipated social consequences of the proposal are positive, resulting from the increased opportunities for local participation in applications for CAES cavern development proposals and the additional safety/environmental protection provided through the regulatory framework.
The anticipated economic consequences of the proposal are neutral. Regulatory requirements will result in additional costs for companies pursuing underground CAES projects; however this would be mitigated to some extent by greater regulatory certainty within the business environment. Improved predictability in the business environment may also help energy storage companies in designing projects and securing investments in energy storage projects.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Comment
Commenting is now closed.
This consultation was open from October 13, 2017
to November 27, 2017
Connect with us
Contact
Andrew MacDonald
300 Water Street
Peterborough ,
ON
K9J 8M5
Canada
Comments received
Through the registry
4By email
9By mail
0