Proposed amendment to regulations under the Ontario Energy Board Act, 1998 to further streamline approvals for pipeline relocations or reconstructions to build infrastructure projects faster.

This posting seeks to receive feedback on a proposal by the Ministry of Energy and Electrification (ENERGY) to amend regulations under the Ontario Energy Board Act, 1998 (OEBA) to further streamline the Ontario Energy Board (OEB) approval process for pipeline relocations or reconstructions that support housing, transit and other infrastructure projects beyond those currently designated in Ontario Regulation 328/03.

Currently, the OEBA allows the OEB to determine that leave-to-construct (LTC) is not required for certain relocation or reconstruction of electricity transmission and distribution lines, and for relocation or reconstruction of pipelines subject to conditions in regulation. Broadening the circumstances in which the OEB can determine that LTC is not required for pipeline relocation or reconstruction would support the government-wide efforts to address timelines related to essential infrastructure projects including building transit and homes faster.

Background

As the government commits to building new housing and transit projects, relocating existing natural gas pipelines can take a significant amount of time for regulatory approvals, even in instances when a utility is moving the infrastructure a short distance such as to the other side of the street or a parallel street. This can add time delays to a construction project.

In June 2024, the Cutting Red Tape to Build More Homes Act, 2024, received Royal Assent, which, among other things, amended the OEBA to provide the government with authority to prescribe in regulation when LTC approval from the OEB would be required for a pipeline relocation or reconstruction project.

Subsequently, the government amended section 3 of Ontario Regulation 328/03, effective July 1, 2024, that LTC would be required for any pipeline relocation or reconstruction only if:

1. The diameter of the line is increased; or,
2. The acquisition of additional land or authority to use additional land is necessary except when,
   • the relocation or reconstruction is to facilitate a priority transit project or a project by a road authority and any additional land required is under the control of the priority transit project proponent or the road authority; and,
   • the relocation or reconstruction is pursuant to an agreement between the pipeline owner and priority transit project proponent or road authority that specifies that the cost of the relocation or reconstruction is to be paid for wholly or partly by the priority transit project proponent or the road authority; and,
   • the OEB makes a determination that the Crown’s duty to consult (DTC), if it applies, has been adequately discharged.

We previously posted these legislative and regulatory proposals for consultation on the Environmental Registry of Ontario (ERO).

The effect of the legislative and regulatory changes on July 1, 2024, was to modernize LTC approvals for pipeline relocations and reconstructions to support building transit and housing faster. Prior to the change, LTC was required for pipeline relocations or reconstructions if the diameter of the line changed (either increased or decreased) or if the acquisition of land or authority to use additional land was necessary (without exception).

Current Proposal

We have heard from stakeholders that a streamlined OEB approval process can also benefit pipeline relocations and reconstructions that facilitate other infrastructure and related projects. The current regulation only allows for exceptions from the OEB’s LTC requirements for pipeline relocations and reconstructions supporting priority transit projects and projects by a road authority.

We are seeking feedback on a proposal to make additional regulatory changes such that the OEB can determine that the requirement to obtain LTC approval does not apply to pipeline relocations or reconstructions that facilitate any type of infrastructure project or external relocation request, subject to the same conditions currently in place in section 3 of Ontario Regulation 328/03 (i.e., control of land, cost allocation and the OEB making a determination that the Crown’s DTC, if it applies, has been adequately discharged).

Examples of these infrastructure projects or external relocation requests to a pipeline owner could include other provincially or municipally delivered transit projects, municipal water and sewer projects, flood protection projects, housing developments or projects by rail or marine authorities.

Environmental Impact

The proposal is not anticipated to have a significant impact on the environment. While certain infrastructure projects or other work facilitated by pipeline relocations may have environmental impacts, the infrastructure or related projects are subject to their own environmental review requirements outside of OEB jurisdiction. Similarly, all relevant permits and approvals to ensure environmental, technical and safety requirements from Ontario ministries, authorities and municipalities would still need to be met before proceeding with pipeline relocations or reconstructions.

There are no new administrative costs for business. The proposed broadening of exemption from leave-to-construct for certain pipeline relocation or reconstruction would aim to reduce costs and timelines for pipeline developers compared to the OEB’s current leave-to-construct process.