Streamlining environmental permissions for the electricity sector

Ontario is proposing to streamline permissions for certain electricity system projects to help get these important infrastructure projects underway faster, while maintaining environmental protections.

Streamlining environmental permissions for the electricity sector

Ontario is proposing to move certain stormwater management and spill control works located at electricity generation, transmission, distribution and battery energy storage system stations to a registration-first approach. This requires proponents such as local distribution or utility companies to self-register their works online on the Environmental Activity and Sector Registry instead of applying for an Environmental Compliance Approval. These changes would reduce burden for the electricity sector and help accelerate the development of electricity infrastructure.

Environmental protections will be maintained through design, operation and maintenance requirements in the regulation such as minimum design requirements and spill response provisions. Registered works would be subject to a site-specific technical assessment performed by a licensed engineering practitioner. The technical assessment must include the preparation of a design report that meets ministry requirements, including an assessment of whether the activity is a significant drinking water threat in the local source protection plan and measures to manage any potential risks to drinking water. Proponents would not be allowed to register stormwater management works in areas where the activity is considered a significant drinking water threat and the local source protection plan prohibits the establishment of new stormwater management works.

Once proponents have registered eligible activities on the Environmental Activity and Sector Registry, registrants can construct and operate the works immediately.

Requiring proponents of certain stormwater management and spill control works located at electricity facilities to self-register instead of requiring a ministry-reviewed permission would support accelerated development of electricity infrastructure, supporting the Powering Ontario’s Growth initiative. Accelerated development of this infrastructure would also help power housing in Ontario as well as industrial sectors such as EV battery manufacturing.

Regulatory changes made under the Environmental Protection Act

This proposal would streamline approvals and require proponents to self-register certain stormwater management and spill control works at electricity generation, transmission, distribution and battery energy storage system stations online.

Proponents that register activities online would follow rules in the proposed regulation and would not require an Environmental Compliance Approval. This means that proponents would be able to proceed with the activity immediately after self-registration.

Protecting the environment

To maintain environmental protection, proponents of registered works would be required to meet regulatory requirements such as minimum design criteria. The design and assessment of the works would be based on a site-specific technical assessment completed by a licensed engineering practitioner. Registrants would also need to meet ongoing requirements such as operation and maintenance requirements and spill response procedures.

Licensed engineering practitioners would be required to design stormwater management and spill control works and prepare a stormwater management report with the following information:

• design details (for both stormwater management and spill control)
• operations and maintenance manual
• spill contingency plan
• erosion and sediment control plan (as applicable)

The proponents would be required to comply with requirements set out in this report and the registered works would have to be constructed in accordance with the design requirements.

If this regulatory proposal is implemented, the ministry would continue to inspect the registered works as needed to enforce compliance with these regulatory rules.

See our discussion paper attached to the Supporting Materials section of this notice for further details.

Background

The use, operation, establishment, alteration, extension, or replacement of new or existing stormwater management works servicing electricity system projects, including spill control systems, in Ontario currently requires an Environmental Compliance Approval (ECA) under Part II.1 of the Environmental Protection Act. These works, when established and operated in compliance with their respective ECAs, provide containment and management of stormwater and spills from equipment at electrical stations (e.g., transformers) to protect the environment.

Ontario’s registration-first approach requires proponents to self-register prescribed activities online on the Environmental Activity and Sector Registry and allows them to start construction and operation immediately instead of applying for environmental permissions. To maintain environmental protection, proponents of registered activities must follow rules prescribed in sector-specific regulations (e.g., design requirements, environmental outcomes, operation and maintenance, spills response etc.) and may be required to have technical assessments be performed by a qualified person. Ontario recently finalized a regulation that prescribes certain storm water management works activities for registration on the Registry (O. Reg. 137/25). The ministry has a mandate to conduct compliance assessments, including registered activities, to protect the environment and human health.

Public consultation opportunities

This proposal has been posted for a 45-day public review and comment period. We encourage interested parties to make comments on this proposal. Comments made on this proposal and discussion paper will be considered before making a decision on the proposal.

Regulatory impact assessment

This proposal is expected to reduce burden on the regulated community and for the electricity industry and allow electrification projects to receive environmental permissions faster.

The regulatory changes would remove the requirement to obtain an Environmental Compliance Approval for certain stormwater management and spill control works. This would reduce time, cost and resources that proponents spend on seeking environmental permissions from the ministry.

The proposal would allow electricity infrastructure projects to start faster which:

• supports efforts to power the housing in Ontario as well as industrial sectors such as EV battery manufacturing
• supports the launch of Ontario’s competitive energy procurement plan
• boosts the province’s economy
• supports job creation

We are working to develop a Regulatory Impact Assessment to determine potential costs or estimated savings related to this proposal. Please see the discussion paper attached in the supporting materials section of this notice for specific questions about cost considerations.