Report on the Regulatory Review of Ontario Regulation 176/17 (Charges for Taking Ground Water to Produce Bottled Water)

Our government has been taking action and remains committed to strengthening protections for our lakes, rivers, waterways and sources of drinking water by improving the province’s water taking program.

The ministry has completed a five-year review of water charges for water bottling facilities that take ground water.

Our findings from the review of the charge are summarized below.

Purpose of the review

The charges for taking ground water to produce bottled water regulation (O. Reg. 176/17) requires the ministry to review the bottled water charge every five years to determine if the charge is set at an appropriate amount given:

• the costs the province incurs for activities to manage and study the impacts of water takings by water bottling facilities
• the amount by which the costs have varied, if at all, over the five-year period

Findings of the review

1. Program costs

   Between 2017 and 2022, the Ontario government spent an average of $1.7 million per year on activities related to managing groundwater takings by water bottling facilities. Between December 2016 and April 2021, the province imposed a moratorium on permits for new and increased groundwater takings for water bottling, and undertook a number of associated activities:

   • developing and implementing technical guidance for bottled water permit renewals
   • developing and implementing the bottled water charge
   • studying groundwater resources in areas with water bottling operations
   • reviewing the policies, programs, data, and science tools used to manage water takings in Ontario
    

   On April 1, 2021, the bottled water moratorium ended, along with most of the related actions. The province made a number of enhancements to its water taking framework, including a new requirement for bottled water companies to have the support of their local host municipality for new or increasing water taking proposals.

   Since the end of the bottled water moratorium, provincial costs have decreased. In 2021-22, the ministry spent approximately $450,000 on related activities, including:

   • outreach and compliance with water bottling facilities
   • monitoring of groundwater in the vicinity of bottling operations
   • the administration and review of the bottled water charge



2. Charges collected

   Since 2017, the province has collected approximately $770,000 each year from water bottling facilities subject to the charge.

   The ministry will consider the findings of the review as part of any future changes to the bottled water charge under Ontario Regulation 176/17.

   The next review of the charge is required to be posted on the Environmental Registry by December 31, 2027.

Background on the bottled water charge

Ontario Regulation 176/17 (Charges for Taking Ground Water to Produce Bottled Water) applies a charge of $500 per million litres to any facility that requires a permit to take water under section 34.1 of the Ontario Water Resources Act for taking groundwater to produce bottled water.

The charge was put in place to recover some of what the province spends on activities to manage water takings by water bottling facilities, including:

• regulating water bottling facilities under the Ontario Water Resources Act
• monitoring and studying the impact water bottling facilities have on groundwater in the province
• reviewing the regulatory framework that governs groundwater takings by water bottling facilities

Water bottling facilities began paying $500 for every million litres of groundwater taken on August 1, 2017. The charge applies to all groundwater taken by a facility within a calendar year, as reported to the ministry according to their permit to take water.