Policy proposal to regulate additional sewage systems under the Building Code to support construction of on-farm worker housing

The government is seeking public feedback on proposed legislative and regulatory changes under the Fighting Delays, Building Faster Act, 2025 to streamline the construction of new homes and infrastructure (e.g., water, wastewater, roads, transit), reduce gridlock, enhance community safety, and improve landlord-tenant frameworks.

INTRODUCTION

Ontario is proposing changes to its sewage system regulatory framework to support the on-farm housing of the 30,000 annual agricultural workers that underpin the province’s agricultural sector and food-supply chain.

POLICY PROPOSAL OVERVIEW

1. Ontario is proposing amendments to the Ontario Water Resources Act (OWRA) to allow sewage systems servicing on-farm housing for workers, with up to 50,000 L/d of cumulative sewage system design capacity per agricultural lot to be regulated under the Building Code Act and its regulation(s) (ERO posting #025-0900).
2. The proposed amendments to the OWRA could be introduced and if passed would not come into effect until corresponding proposed amendments to the affected regulations and policies have been made, in the months that follow.
3. This policy proposal outlines possible criteria that could qualify sewage systems on agricultural lots under this expansion of Building Code design capacity.
4. Criteria and rules for the proposed systems would be mainly implemented through regulations and policy documents.
5. The intended outcome of this policy proposal, in conjunction with ERO 025-0900, is that sewage systems (i.e. septic systems), subject to certain criteria, that previously would have been regulated by MECP through an environmental compliance approval, will instead be regulated by MMAH and the Building Code and enforced locally by principal authorities (i.e., municipalities, conservation authorities and health units).   
6. This policy proposal is part of a multipronged approach by the government to support on-farm worker housing. Please see related ERO notices for other proposal(s) related to on-farm worker sewage treatment.

POLICY PROPOSAL DETAILS

To protect human health, the environment, and neighbouring property values from contaminants, certain concepts are being considered as part of this proposal.  These concepts seek to address the unique risks and opportunities related to on-farm worker housing sewage treatment on agricultural lots.

1. The policy proposal would be limited to agricultural lots with on-farm worker housing (per ERO # 025-0900).
2. The cumulative design capacity limit would be 50,000 L/d per agricultural lot (per ERO # 025-0900).
3. The policy proposal would limit sewage systems to an individual design capacity of 10,000 L/d or less but allow multiple such systems up to a cumulative design capacity of 50,000 L/d per lot.
4. The proposed systems would be limited to Building Code Class 4 sewage systems (e.g., septic tank/treatments units and leaching beds) and subject to current Building Code Class 4 sewage system requirements.
5. The proposed systems would be limited to treating sanitary sewage of domestic origin, including human body waste, toilet or other bathroom waste, and shower, tub, culinary, sink and laundry waste.
6. Each sewage system above the existing 10,000 L/d per lot threshold would be located one each per 10 acre of land and at the centre of a 10 acre (4 hectare) circular area clear of certain sensitive features including:
   1. Property line(s)
   2. Structure(s) other than on-farm worker housing
   3. Surface water
   4. Agricultural tile drain inlets
   5. Exposed bedrock
   6. Drinking water wells 

5. Despite policy proposal details #1 though #6, existing Building Code rules would continue to apply to cumulative design capacity up to 10,000 L/d per agricultural lot – meaning those sewage systems on agricultural lots that continue to comply with the existing threshold in subsection 53 (6.1) of OWRA.

DISCUSSION QUESTIONS

1. Does the proposed 10 acre (4 hectare) circular clearance from sensitive features, including property lines, greenhouses, etc. strike a reasonable balance between enabling agricultural worker housing and protecting human health, the environment, and neighbouring property values?
2. If warranted, for example to account for higher strength sewage or consistency with other land use planning processes, what would be a practical approach to further protecting human health, the environment, and neighbouring property values?  Examples could include a hydrogeological assessment; expanding the size of the circular clearance areas from 10 acres to 40 acres for example; or reducing the size of additional individual sewage systems to 2,500 L/d each for example.
3. What maintenance requirements should the proposal consider?
4. What new or updated guidance could be beneficial towards implementation for applicants; principal authorities; and technical professionals?
5. What other measures could be taken to protect human health, the environment, and neighbouring property values?

EXISTING FRAMEWORKS
Under Ontario’s existing sewage frameworks, applicants are currently limited to 10,000 L/d per lot of cumulative design capacity for sewage systems regulated under the Building Code Act.  These sewage systems are designed and built according to prescribed standards in the Building Code.  

The Ministry of Municipal Affairs and Housing (MMAH) is responsible for the Building Code Act.  Authority for permitting, inspection, and compliance activities related to Building Code sewage systems is the responsibility of principal authorities including municipalities, public health units, and conservation authorities.

Applicants that currently wish to install more than 10,000 L/d per lot of cumulative design capacity are required under the Ontario Water Resources Act to obtain an Environmental Compliance Approval (ECA) from the Ministry of the Environment, Conservation and Parks (MECP).  

The ECA application review assesses and sets conditions to manage risks to human health, the environment, and neighbouring property values on a site-specific basis and is intended to address larger and more complex situations.  Permitting, inspection, and compliance activities for farms with ECAs are the responsibility of MECP.

POLICY RATIONALE
Each year Ontario farms employ 30,000 agricultural workers to support the planting, growing, and harvesting of fruits, vegetables, and other high value horticultural crops.  These workers are often housed on-farm in structures (e.g., bunkhouses) that require on-site sewage treatment (i.e. septic systems), where municipal servicing does not exist. For example, high concentrations of agricultural workers are employed in Essex County, Chatham-Kent, Norfolk County, and Niagara region.

The current threshold of 10,000 L/d per lot of design capacity, under the Building Code, is generally sufficient to service 40 workers. Up to 300 farms in Ontario could benefit from this proposal, based on the estimated number of farms that currently (or could soon) exceed 40 annual agricultural workers.  The proposal to increase the cumulative sewage system design capacity to 50,000 L/d per agricultural lot, could enable farm owners to house approximately 200 workers on a single lot and service them with multiple Building Code sewage systems.

Increasing the Building Code sewage system cumulative design capacity limit, subject to certain enhanced protective measures, such as greater setbacks from sensitive features, is intended to allow for more timely construction of on-farm housing for workers under the Building Code Act.

Analysis of Regulatory Impact:
This proposal is expected to reduce burdens on the farming sector and would allow farmers to increase the capacity and quality of on-farm housing to support seasonal agricultural works. The proposed changes would also reduce time, cost and resources that farmers spend on seeking approvals.