Amending the Renewable Energy Approval regulation to remove certain project types from the process and streamline the review of Natural Heritage Assessments

To keep Ontario competitive and help important renewable energy projects get started faster, the Ministry of the Environment, Conservation and Parks (ministry) is proposing amendments to Ontario Regulation 359/09: Renewable Energy Approvals (REA regulation), made under the Environmental Protection Act (EPA) to adopt more streamlined approaches for the Renewable Energy Approval (REA) process.

As part of this effort, the ministry is proposing to remove certain renewable energy projects from the REA approval process, if the primary purpose of the facility where the project is located is not the production of electricity, and if the facility where the project is located is already approved (or would be approved) under other ministry approvals that would also apply to the renewable energy project.

In addition, the ministry is proposing to remove the requirement for the Ministry of Natural Resources (MNR) to review Natural Heritage Assessments (NHAs) and Bird/Bat Environmental Effects Monitoring Plans (EEMPs) as part of the REA process. Instead of requiring a review by MNR, proponents would be required to attest that these reports have been completed by qualified persons in accordance with an updated NHA Guide. For more details about MNR’s proposed updates to the NHA Guide, please see ERO proposal posting # 025-1146.

The proposed regulatory amendments aim to accelerate the REA application process by removing duplicative requirements when facilities have approvals under other processes that could also apply to renewable energy projects, and by reducing administrative steps and leveraging the expertise of qualified persons. The proposed amendments are expected to maintain environmental protection standards while enhancing efficiency, enabling renewable energy projects to proceed more quickly and contribute to Ontario’s clean energy goals.

Proposed Changes:

The ministry is proposing the following amendments to Ontario Regulation 359/09 under the EPA:

1.Removal of REA Requirements for Certain Project Types:

The ministry is proposing to remove certain types of projects from the REA process where:

• The projects are located at facilities where electricity generation is ancillary to the facility’s main function
• Electricity is primarily generated for on-site use
• These facilities are already subject to other existing environmental approvals, such as:
  • Environmental Compliance Approvals (ECAs)
  • Permits to Take Water (PTTWs)
• The environmental impacts of the electricity generation component can be adequately addressed through these existing approvals

This proposed amendment would apply to facilities such as industrial operations that use renewable energy sources internally and are already regulated under other ministry frameworks. An example is an automotive manufacturing facility or a hospital where electricity is generated primarily for the facility’s use using biogas and an ECA, PTTW and a REA are currently required. Exempting these facilities from requiring a REA would reduce regulatory duplication while maintaining environmental oversight through the remaining ministry-reviewed permissions.

2.Streamlining of Natural Heritage Assessment and Bird/Bat Environmental Effects Monitoring Plan Reviews:

The REA regulation requires applicable renewable energy projects to complete an NHA. Through the NHA, applicants identify any natural features at or near the proposed project location, follow procedures to determine if development prohibitions apply, and prepare an Environmental Impact Study (EIS) where required.

To support completion of an NHA and EIS, MNR developed the Natural Heritage Assessment Guide for Renewable Energy Projects which sets out evaluation technical criteria and procedural guidance to address natural heritage protections required by the REA Regulation. This guide must be used when a NHA is required to be conducted for a renewable energy project.

The REA Regulation also requires applicants proposing wind power projects to prepare an EEMP in respect of birds and bats. The EEMP must be prepared in accordance with MNR’s bird and bat guidelines. The bird and bat habitat guidelines provide guidance on identifying and assessing bird and bat habitat and addressing potential negative effects on their habitats during the planning, construction, and operation of onshore wind power projects in Ontario.

Currently MNR reviews NHAs and Bird/Bat EEMPs submitted as part of REA applications to confirm the identification and evaluation of significant natural heritage features and that the reports meet applicable MNR guidelines. However, this role is proposed to be replaced by a requirement that the applicant attest that the required reports were prepared by qualified persons.

The proposed amendments to the REA regulation include:

• Introduce a definition for “qualified person”: A person conducting studies, evaluations, or preparing reports who possesses the expertise, knowledge, or experience specified in the Natural Heritage Assessment Guide, as amended from time to time
• Add a general provision requiring that any individual conducting or preparing Natural Heritage related assessments or reports must meet the qualifications outlined in the Natural Heritage Assessment Guide
• Replace the requirement for MNR confirmation with a requirement for the proponent to, as part of its REA application, submit an attestation indicating that the necessary studies were completed by qualified persons in accordance with the Natural Heritage Assessment Guide
• Require the name and qualifications of the individual preparing any Natural Heritage related environmental impact study report to be included in the report
• Remove specific references to bird and bat guidelines from the regulation and provide related guidance in the updated Natural Heritage Assessment Guide
• Update and remove outdated content in the regulation to better reflect MNR’s current role in identifying significant natural heritage features
• Update other outdated references such as ministry names and similar

The ministry will update the Technical Guide for Renewable Energy Approvals to account for these proposed regulatory amendments if implemented, as applicable.

Together, these changes are expected to reduce regulatory duplication and administrative delays, improve efficiency by leveraging attestations from qualified persons, and enable proponents to submit REA applications sooner—supporting faster project delivery while maintaining strong environmental protection standards.

Background

Renewable energy projects in Ontario are governed by Ontario Regulation 359/09 under the EPA. This regulation sets out the requirements for obtaining a REA from the ministry for most wind, solar, and bio-energy projects.

REAs are typically required when a facility generates electricity for use on-site or for connection to the electricity grid. This includes projects such as wind turbines, solar arrays, and anaerobic digesters. Currently, proponents may need a REA even if electricity generation is not the facility’s primary function—such as in industrial or agricultural operations—resulting in additional regulatory burden and the need to obtain multiple environmental permissions.

As part of the REA application process, proponents must also submit NHAs. These assessments are currently reviewed by the MNR, a step that can add complexity and delay to the approval timeline.

Public consultation opportunities

This proposal is being 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 will be considered before making a decision.

Regulatory impact assessment

Renewable energy is a key component of Ontario’s energy supply mix, supporting both environmental sustainability and economic development. By making it easier and faster for proponents to obtain REAs (or be exempted from the REA process), the proposed changes will help accelerate the deployment of renewable energy projects across the province. This will enhance Ontario’s ability to meet clean energy targets, attract investment, and support local job creation.

The regulatory changes are expected to support proponents by reducing regulatory and administrative burden and costs, speed up project delivery, provide regulatory clarity, simplify compliance requirements and streamline efforts related to public and Indigenous consultation, while maintaining environmental protection.

Regulatory impact analysis:

• The proposed amendments are anticipated to have a positive impact on business and reduce administrative burden by removing duplication of requirements for projects that are approved under other processes
• The proposed changes are intended to provide greater certainty for businesses who want to invest in developing renewable energy projects
• Through this posting, we are seeking input on anticipated benefits or costs to Ontario businesses to better help the ministry understand the real costs or cost savings associated with these proposed changes