Regulatory Proposal under the Conservation Authorities Act to support the implementation of the Regional Conservation Authority Framework

In April 2026, as part of the government’s plan to improve Ontario’s CA system, Ontario amended the Conservation Authorities Act (CAA) and set out the consolidation of the province’s 36 conservation authorities (CA) into 9 regional CAs which will take effect on February 1, 2027. Transition planning, led by the Ontario Provincial Conservation Agency (OPCA), is underway to support the transition to the regional CA framework. Eight transition committees were established and are being led by project executives appointed by OPCA in July 2026 to develop regional transition plans to coordinate a successful consolidation, as required by the CAA. 

As part of implementing the regional consolidation of Ontario’s CAs, the government is introducing legislative changes, a summary of which can be viewed at the following link: RR#26-MECP017.

In addition to these proposed legislative changes, we are also proposing the following new and amended regulations under the CAA to advance the successful transition to regional CAs and ensure continuity of programs and services delivered by CAs: 

• a new LGIC regulation governing OPCA cost recovery from CAs 
• amendments to O. Reg. 402/22: Budget and Apportionment  
• amendments to O. Reg. 401/22: Determination of Amounts under Subsection 27.2(2) of the Act 
• amendments to O. Reg. 41/24: Prohibited Activities, Exemptions and Permits 
• amendments to O. Reg. 686/21: Mandatory Programs and Services 

Summary of Proposed Changes 

1. Proposed new regulation to govern cost recovery from CAs for OPCA’s operational costs 

Under section 35.26 of the CAA, OPCA has the power to recover the costs and expenses it incurs (“Cost Recovery”) from CAs in accordance with any regulations. This section is proposed to come into force on the transition date. The ministry is proposing to establish a new regulation under the CAA that would create a transparent and consistent approach for apportioning OPCA’s costs and expenses among regional CAs, who will benefit from OPCA’s centralized leadership, services, and best practice guidance to achieve consistency, efficiency and service excellence.  

The proposed regulation would:  

• Prescribe the method for the apportionment of OPCA’s costs and expenses to each CA. The method the ministry is proposing includes:  
• OPCA would first determine its total cost recovery amount for a given fiscal year based on the board-approved budget 
• Next OPCA would divide that amount by the total of the operating expenses of all the CAs (based on the approved budgets of the CAs) for that given year. This would result in the total % amount that is to be applied to each regional CA – i.e. ‘cost recovery percentage’ 
• Finally, the total amount due by each regional CA would be calculated by multiplying a regional CA’s approved operating expenses for the same year with that cost recovery percentage. Note that the cost recovery percentage would be recalculated each year and therefore will differ from year to year depending on changes in the OPCA operating costs, and the operating expenses of the regional CAs.  
• Prescribe details about OPCA’s issuance of a notice to pay to CAs, including:   
• Two cost recovery notices for a fiscal year would be issued:  
• the first notice would be issued following an OPCA board of directors-approved budget (i.e. anticipated in January) for that fiscal year indicating the total cost recovery amount due to OPCA by the regional CA (based on the OPCA board-approved budget). The notice will require the regional CA to pay half of that amount within 30 days. 
• the second and final notice would be issued following the minister- approved OPCA budget (i.e. anticipated in April), in alignment with OPCA’s fiscal year confirming the final cost recovery amount for that fiscal year (which may or may not have changed from the OCPA budget that was approved by the OPCA board of directors in January) and requiring payment by the CA for the remaining amount within 30 days. In this notice, CAs would be given an estimate of the proposed cost recovery amount for the regional CA for the following fiscal year. 
• Notices would include: 
• The total amount of OPCA costs and expenses that would be apportioned across the CAs for the year. 
• The amount the regional CA is required to pay to OPCA, the cost recovery percentage, and the calculation to determine the amount to be paid. 
• Estimated amount payable for the following year to inform the regional CAs budgets. 
• The timing for the payment by the regional CA. 

The proposed regulation is intended to provide a fair, transparent and predictable annual cost recovery process for regional CAs and OPCA. 

2. Amendments to O. Reg. 402/22 and O. Reg. 401/22 

Two regulations under the CAA govern the CA budgeting and apportionment process for apportioning costs and expenses to its participating municipalities: 

• O. Reg. 402/22: Budget and Apportionment - details CA budget process and apportionment methods for allocating CA costs and expenses among participating municipalities; and 
• O. Reg. 401/22: Determination of Amounts Under Section 27.2 (2) of the Act (amounts owed by specified municipalities) - details the methods available to CAs to determine amounts owing by their specified municipalities for CA programs and services provided in respect of the CWA and LSPA.  

Legislative amendments that passed in April 2026 established the governance framework for regional CAs that will designate single-tier and all upper-tier municipalities as the participating municipalities of the regional CAs. Currently, the participating municipalities are single-tier municipalities, regional municipalities, and lower-tier municipalities in counties. 

The government is proposing regulatory amendments to O. Reg 402/22 and O. Reg. 401/22, including consequential amendments necessary to accommodate the transition to regional CAs and designation of single-tier and upper-tier municipalities as participating municipalities. These amendments would ensure that budgeting and apportionment processes continue to operate as intended while maintaining the existing budget and apportionment framework. 

Proposed amendments to O. Reg. 402/22 would require certain budgeting and apportionment decisions to be completed before the start of the budget year. This would help ensure consistency for municipalities that work with more than one regional CA or with many other municipalities within a regional CA. Specifically, regional CAs would be required to: 

• Approve the apportionment amounts and final CA budget no later than December 31 of the year preceding the budget year 
• Provide the final budget and notices of apportionment to each participating and specified municipality, no later than December 31 of the year preceding the budget year. Copies of the final budget would also be required to be provided to OPCA  

The proposal would not alter the existing weighted voting framework. Participating municipalities would continue to have weighted votes for determining the levy apportionment that reflect their apportioned share of CA costs, subject to the existing rule that no municipality hold more than 50% of the weighted vote, unless they have more than 50% of the members of the CA. 

These updates are intended to minimize disruption, support an orderly transition to the regional CA framework, and help ensure that budgeting and municipal apportionment processes continue to operate fairly and effectively. 

3. Proposed amendments to O. Reg. 41/24: Prohibited Activities, Exemptions and Permits 

Section 28 of the CAA prohibits development and other activities in and around hazardous areas and interference with a watercourse of a wetland without a permit from a CA. O. Reg. 41/24 sets out the details of the permitting framework under the CAA, including technical text-based descriptions of the areas where development is prohibited without a permit, exceptions from permit requirements for certain low-risk activities, and permitting application processes and service standards.  

O. Reg. 41/24 took effect on April 1, 2024, and replaced 36 provincially-approved regulations administered by each CA with a single Minister’s regulation. The regulation applies to all CAs but maintains local differences to reflect the unique geographies and hazard conditions in different watersheds, in alignment with provincial natural hazard policies for municipalities led by the Ministry of Natural Resources. For example, the regulatory event flood standards that are used in flood plain mapping apply differently to the CAs across the province and within certain local watersheds, and certain CAs apply a different description of the shoreline hazard.  Following CA consolidation, the existing technical standards used to identify where development is prohibited without a permit are intended to continue applying within the appropriate watersheds. However, because the current technical descriptions reference existing CA jurisdictions, the application of these standards could become unclear following consolidation without regulatory changes. 

The proposed amendments to O. Reg. 41/24 would: 

• Continue to apply the existing technical standards that are used to identify where development is prohibited without a permit in the appropriate watersheds following the consolidation of the current 36 CAs into 9 regional CAs 
• Correct technical standards that were inaccurately described in O. Reg. 41/24 to align with provincially approved standards including: 
• Ensuring that all applicable flood event standards are listed accurately in Schedule 1, as per the provincially approved standards. 
• Clarifying and consistently applying the applicable flood standard for the Great Lakes-St. Lawrence River System and inland lakes, unless otherwise described in the regulation. 
• Correct shoreline hazard descriptions within the watersheds of certain predecessor CAs as per provincially approved standards 
• Niagara Peninsula CA: no allowance (“buffer”) in addition to the flooding, erosion and dynamic beach hazard 
• Lake Simcoe Region CA: no allowance (“buffer”) in addition to the flooding, erosion and dynamic beach hazard 
• Saugeen Valley CA: 15 metre allowance (“buffer”) in addition to the flooding, erosion and dynamic beach hazard, unless there is a dynamic beach 
• Make additional technical updates to clarify the intent of certain regulatory requirements, including: 
•  Administrative and housekeeping updates to correct typographical errors, and replacing terms for consistent terminology. 
• Update the wording in clause 7(1)(h) to clarify the intent for what constitutes confirmation from a property owner to undertake proposed work as part of a complete permit application  
• Clarifying that permit exceptions for the maintenance or repair of municipal drains do not apply where the activity is taking place within a wetland, in accordance with the Drainage Act and Conservation Authorities Act Protocol. 

These amendments are intended to improve clarity, support the consistent implementation of the regulation, and avoid disruption to CA permitting during and following the transition to the regional CA framework. 

4. Proposed amendments to 686/21: Mandatory Programs and Services  

The mandatory program and services regulation includes the programs and services that conservation authorities must provide related to their duties, functions and responsibilities as source protection authorities under the Clean Water Act as well as, in respect of Lake Simcoe Region Conservation Authority, related to its responsibilities under the Lake Simcoe Protection Act.  

Proposed regulatory amendments would make consequential changes to section 15 of O. Reg. 686/21 to update the name of the Lake Simcoe Region Conservation Authority to the Lake Huron Regional Conservation Authority and to make consequential amendments to section 13 of the regulation, as needed, to align with the planned amendments to the Clean Water Act described in ERO bulletin 026-1069. 

Providing feedback 

We welcome your feedback in response to the proposed regulatory amendments. Comments may be submitted through this posting or by email to ca.office@ontario.ca. 

Additionally, we are seeking your input and ideas to inform a future regulatory proposal governing watershed councils under the CAA. To review the discussion questions and provide input, please visit the Watershed Councils discussion questions page (ERO #026-1075) . 

Analysis of regulatory impact 

The government is proposing a new regulation to govern OPCA cost recovery from CAs. The regulatory impact of this proposed regulation is neutral and expected to be minimal. Additionally, the environmental and social impacts of the proposal are expected to be neutral to positive. The proposed regulations would support OPCA to provide its mandated oversight of regional CAs to strengthen their capacity and effectiveness in delivering important programs and services to protect people and property from flooding and other natural hazards. 

The approach proposed through this posting is intended to support an orderly transition to the regional CA framework, improve clarity of the legislative and regulatory framework, establish an efficient and equitable cost-recovery mechanism for the OPCA, ensure fair and transparent budgeting and apportionment, and minimize disruption to CA programs and services. 

The proposed amendments to the budgeting and apportionment regulations would not alter existing conservation authority budgeting and apportionment practices. Similarly, the proposed amendments to O. Reg. 41/24 are not expected to change the CA permitting process nor impose additional regulatory impact. 

Through this posting, we welcome comments on anticipated benefits or costs to better help the ministry understand the real costs or cost savings associated with this proposal.