This consultation was open from:
November 23, 2022
to January 9, 2023
Decision summary
Bill 46, Less Red Tape, Stronger Ontario Act, 2023, received royal assent on March 22, 2023. The act amends the Oil, Gas and Salt Resources Act to remove the prohibition on carbon storage. This change represents a first step towards enabling geologic carbon storage in the province of Ontario.
Decision details
Bill 46, Less Red Tape, Stronger Ontario Act, 2023, received royal assent on March 22, 2023. The act amends the Oil, Gas and Salt Resources Act by removing the prohibition on the injection of carbon dioxide in an underground geologic formation for the purposes of carbon sequestration (also called carbon storage), including the prohibition on issuing a permit for that purpose.
This change is the first step in Ontario’s multi-stage plan towards developing a regulatory framework for carbon storage by addressing legislative barriers to carbon storage in the province. Proponents will need to wait until changes are made in future phases before they can be authorized under this act for carbon storage projects. Ontario’s multi-stage plan can be viewed in the geologic carbon storage roadmap shown in the external links section of this notice.
Amendments are now being proposed to the Oil, Gas and Salt Resources Act to create an authorization process for special projects to test or demonstrate new activities, such as carbon storage, as well as to enhance measures to safeguard people and the environment. You can read about these new proposals in Environmental Registry of Ontario notice 019-6752.
Geologic carbon storage is one method of managing greenhouse gas emissions. Enabling carbon storage projects through future phases would allow businesses to take advantage of incentives and federal funding opportunities and provide them with greater investment certainty.
Carbon storage plays an important role in Ontario's Low-Carbon Hydrogen Strategy, which sets out a vision for a low-carbon hydrogen economy in our province – where we can develop a self-sustaining sector in Ontario, evolve our energy system, create local jobs, and attract investment while reducing greenhouse gas emissions.
Effects of consultation
Many of the comments received addressed matters beyond the scope of this proposal, such as approach and timelines for future phases and other components of carbon capture, utilization and storage beyond storage activities.
Feedback was generally supportive of the proposal to remove the prohibition as a first step, although many commentors encouraged expedited development of the regulatory framework and more comprehensive changes to support carbon storage projects.
Indigenous communities that responded have identified the potential for impacts to Aboriginal and treaty rights that may result from an influx of these projects in southwestern Ontario, and the need for more engagement and consultation on policy proposals and any future projects. The ministry will continue to engage with interested communities on proposals to develop a regulatory framework for carbon storage, including any future proposals that may address application requirements and processes for individual 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.
300 Water Steet
2nd Floor South
Peterborough,
ON
K9J 3C7
Canada
Connect with us
Contact
Public Input Coordinator
300 Water Steet
2nd Floor South
Peterborough,
ON
K9J 3C7
Canada
Original proposal
Proposal details
Under the Oil, Gas and Salt Resources Act (OGSRA), the Ministry of Natural Resources and Forestry regulates the drilling and operation of wells, and associated pipelines and equipment, used for activities such as the exploration and production of oil and natural gas, salt solution-mining, the underground storage of hydrocarbons, and compressed air energy storage projects.
Geologic carbon storage is one method of managing emissions. Currently, the OGSRA prohibits the injection of carbon dioxide underground for the purpose of sequestering – or permanently storing – carbon when it is done in conjunction with other injection activities regulated under this act (e.g., projects to enhance oil and gas recovery).
Based on the feedback we received on the geological carbon storage discussion paper posted in the winter of 2022, we plan to work towards creating a framework to regulate and enable the permanent geologic storage of carbon through a phased approach, while also maintaining public safety and safeguarding the environment.
We are now proposing an amendment to the OGSRA that would remove the prohibition related to carbon storage. This proposed change is the first step in our plan to address barriers to carbon storage in the province, and operators of wells under this act would need to wait until changes are made in future phases before they could be authorized for carbon storage projects.
Future phases - which have been described in the roadmap linked at the bottom of this notice - would propose additional legislative and regulatory changes to support carbon storage demonstration projects (initially on private land) and eventually commercial-scale projects (Crown and private land).
If approved, these changes would come into effect upon royal assent.
Regulatory impact analysis
The environmental, social and economic consequences of this proposal are expected to be neutral.
The removal of the prohibition, if approved, is an initial step towards enabling and regulating geologic carbon storage in the province. It would help to clarify existing rules and facilitate future alignment of this regulatory framework with other Ontario and federal initiatives that are currently underway. Additional future legislative changes would be required before geologic carbon storage activities could be authorized under this act.
No direct or indirect compliance costs are expected as a result of this proposal.
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.
300 Water Street, 2nd Floor, South Tower
Peterborough,
ON
K9J 8M5
Canada
Comment
Commenting is now closed.
This consultation was open from November 23, 2022
to January 9, 2023
Connect with us
Contact
Public Input Coordinator
300 Water Street, 2nd Floor, South Tower
Peterborough,
ON
K9J 8M5
Canada
Comments received
Through the registry
13By email
8By mail
0