Regulation - LGIC
Proposed amendments to regulations made under the Environmental Protection Act and the Environmental Assessment Act for combined heat and power systems that use natural gas or wood biomass as fuel
Regulation Number(s):
O. Reg. 524/98
O. Reg. 1/17
O. Reg. 359/09
O. Reg. 116/01
O. Reg. 101/07
O. Reg. 1/17
O. Reg. 359/09
O. Reg. 116/01
O. Reg. 101/07
Instrument Type:
Regulation - LGIC
Bill or Act:
Environmental Protection Act, Environmental Assessment Act
Summary of Decision:
In addition to the objectives and benefits of the proposal mentioned above, the regulatory amendments are expected to save time and costs for proponents choosing to install such systems. While results may vary depending on the proponent, planning and design of CHP systems, it is estimated that proponents could potentially benefit from:
• a potential one-time application fee savings of up to approximately $20,000 for a natural gas combustion turbine CHP
• a potential savings of approximately up to $250,000 or more for a wood biomass fuel CHP project depending on the project's complexity and whether an exemption, EASR or an ECA is required
Also, streamlining permissions for systems could create additional economic opportunities for Ontario's CHP manufacturers and technical experts.
For CHP systems that use wood biomass, this initiative could also enhance the Ontario-based market for wood biomass leading to jobs, investment and manufacturing opportunities in Ontario's forestry sector. For example, pulp and paper mills could gain new customers for wood pellets leading to jobs and economic development.
These benefits may be achieved in addition to mitigating impacts to the environment if the systems are operated in accordance with regulatory requirements. The regulatory requirements in the proposal are intended to mitigate air, noise and odour impacts from all sources of contaminants from CHP systems described above.
• a potential one-time application fee savings of up to approximately $20,000 for a natural gas combustion turbine CHP
• a potential savings of approximately up to $250,000 or more for a wood biomass fuel CHP project depending on the project's complexity and whether an exemption, EASR or an ECA is required
Also, streamlining permissions for systems could create additional economic opportunities for Ontario's CHP manufacturers and technical experts.
For CHP systems that use wood biomass, this initiative could also enhance the Ontario-based market for wood biomass leading to jobs, investment and manufacturing opportunities in Ontario's forestry sector. For example, pulp and paper mills could gain new customers for wood pellets leading to jobs and economic development.
These benefits may be achieved in addition to mitigating impacts to the environment if the systems are operated in accordance with regulatory requirements. The regulatory requirements in the proposal are intended to mitigate air, noise and odour impacts from all sources of contaminants from CHP systems described above.
Analysis of Regulatory Impact:
Regulatory impact statement
In addition to the objectives and benefits of the proposal mentioned above, the proposed regulatory amendments are expected to, if approved, save time and costs for proponents choosing to install such systems. While results may vary depending on the proponent, planning and design of CHP systems, it is estimated that proponents could potentially benefit from:
• a potential one-time application fee savings of up to approximately $20,000 for a natural gas combustion turbine CHP
• a potential savings of approximately up to $250,000 or more for a wood biomass fuel CHP project depending on the project's complexity and whether an exemption, EASR or an ECA is required
Also, streamlining permissions for systems could create additional economic opportunities for Ontario's CHP manufacturers and technical experts.
For CHP systems that use wood biomass, this initiative could also enhance the Ontario-based market for wood biomass leading to jobs, investment and manufacturing opportunities in Ontario's forestry sector. For example, pulp and paper mills could gain new customers for wood pellets leading to jobs and economic development.
These benefits may be achieved in addition to mitigating impacts to the environment if the systems are operated in accordance with regulatory requirements. The regulatory requirements in the proposal are intended to mitigate air, noise and odour impacts from all sources of contaminants from CHP systems described above.
In addition to the objectives and benefits of the proposal mentioned above, the proposed regulatory amendments are expected to, if approved, save time and costs for proponents choosing to install such systems. While results may vary depending on the proponent, planning and design of CHP systems, it is estimated that proponents could potentially benefit from:
• a potential one-time application fee savings of up to approximately $20,000 for a natural gas combustion turbine CHP
• a potential savings of approximately up to $250,000 or more for a wood biomass fuel CHP project depending on the project's complexity and whether an exemption, EASR or an ECA is required
Also, streamlining permissions for systems could create additional economic opportunities for Ontario's CHP manufacturers and technical experts.
For CHP systems that use wood biomass, this initiative could also enhance the Ontario-based market for wood biomass leading to jobs, investment and manufacturing opportunities in Ontario's forestry sector. For example, pulp and paper mills could gain new customers for wood pellets leading to jobs and economic development.
These benefits may be achieved in addition to mitigating impacts to the environment if the systems are operated in accordance with regulatory requirements. The regulatory requirements in the proposal are intended to mitigate air, noise and odour impacts from all sources of contaminants from CHP systems described above.
Further Information:
Link to Environmental Registry
Proposal Number:
20-MECP001
Posting Date:
October 14, 2020
Summary of Proposal:
Technologies such as natural gas combustion turbines, used for power, or wood-fired combustors, used for heat in connection with a building's comfort heating system for comfort heating, may be coupled with a secondary device to create a combined heat and power (CHP) system.
CHP systems are an energy efficient technology that: generates power and
captures the excess heat to provide space heating or steam. Compared to conventional power and heat production, CHP systems offer benefits, including:
• better efficiency by utilizing the heat that would otherwise be wasted
• better reliability and resiliency to combat the possible impacts from weather-related emergencies
• use of wood biomass as fuel can help reduce fossil fuel consumption in parts of rural or Northern Ontario where access to natural gas is limited
CHP systems can be used in a variety of facilities, including:
• residential or municipal buildings (e.g., condominiums or community centres)
• institutional or commercial buildings (e.g., hospitals or hotels)
• manufacturing operations (e.g., food processing)
Currently, permissions for these combustion turbines and wood-fired combustors are often subject to different regulatory requirements even though the level of risk to the environment and human health are similar to comparable technologies. This creates an unlevel playing field for clients seeking to install these systems. The proposed regulation amendments would ensure these systems that are fueled by natural gas or wood biomass and have similar environmental and human health impacts are subject to similar or the same regulatory requirements. This proposal introduces a more uniform risk-based approach that aligns approval requirements with the level of risk and ensures human health and the environment are protected.
Proposed amendments to regulations made under the Environmental Protection Act:
1. Exemptions for Low-Risk Micro-Systems
We are proposing to amend Ontario Regulation (O. Reg.) 524/98 - Environmental Compliance Approvals (ECA) - Exemptions from Section 9 of the Act (O. Reg. 524/98) that would be made under the Environmental Protection Act (EPA) to include new exemptions to ECA requirements for micro-systems in relation to air emissions:
• Natural Gas: CHP or power only systems under 500 kW and certified by the California Air Resources Board; meets applicable noise requirements (i.e., requirements to have the equipment indoors or meet equipment-based noise limits); and uses natural gas only.
• Wood Biomass: CHP or wood-fired combustors between 50 kW and up to 150 kW; wood fuel meets specified Canadian Standards Association requirements; and the equipment meets specified European Committee for Standardization requirements.
Qualified low-impact and less complex micro-systems that meet criteria would be exempt from section 9 of the EPA and would therefore not require an ECA or a Renewable Energy Approval (REA). The ministry can still inspect facilities and ensure compliance with legal requirements.
See attached proposed amendments to O. Reg. 524/98 (ECA - Exemptions from Section 9 of the Act) for further details.
2. Air Emissions Environmental Activity and Sector Registry (EASR)
Registration for Lower-Risk Small Systems
To see the rest of the posting, see ERO posting 019-1134
CHP systems are an energy efficient technology that: generates power and
captures the excess heat to provide space heating or steam. Compared to conventional power and heat production, CHP systems offer benefits, including:
• better efficiency by utilizing the heat that would otherwise be wasted
• better reliability and resiliency to combat the possible impacts from weather-related emergencies
• use of wood biomass as fuel can help reduce fossil fuel consumption in parts of rural or Northern Ontario where access to natural gas is limited
CHP systems can be used in a variety of facilities, including:
• residential or municipal buildings (e.g., condominiums or community centres)
• institutional or commercial buildings (e.g., hospitals or hotels)
• manufacturing operations (e.g., food processing)
Currently, permissions for these combustion turbines and wood-fired combustors are often subject to different regulatory requirements even though the level of risk to the environment and human health are similar to comparable technologies. This creates an unlevel playing field for clients seeking to install these systems. The proposed regulation amendments would ensure these systems that are fueled by natural gas or wood biomass and have similar environmental and human health impacts are subject to similar or the same regulatory requirements. This proposal introduces a more uniform risk-based approach that aligns approval requirements with the level of risk and ensures human health and the environment are protected.
Proposed amendments to regulations made under the Environmental Protection Act:
1. Exemptions for Low-Risk Micro-Systems
We are proposing to amend Ontario Regulation (O. Reg.) 524/98 - Environmental Compliance Approvals (ECA) - Exemptions from Section 9 of the Act (O. Reg. 524/98) that would be made under the Environmental Protection Act (EPA) to include new exemptions to ECA requirements for micro-systems in relation to air emissions:
• Natural Gas: CHP or power only systems under 500 kW and certified by the California Air Resources Board; meets applicable noise requirements (i.e., requirements to have the equipment indoors or meet equipment-based noise limits); and uses natural gas only.
• Wood Biomass: CHP or wood-fired combustors between 50 kW and up to 150 kW; wood fuel meets specified Canadian Standards Association requirements; and the equipment meets specified European Committee for Standardization requirements.
Qualified low-impact and less complex micro-systems that meet criteria would be exempt from section 9 of the EPA and would therefore not require an ECA or a Renewable Energy Approval (REA). The ministry can still inspect facilities and ensure compliance with legal requirements.
See attached proposed amendments to O. Reg. 524/98 (ECA - Exemptions from Section 9 of the Act) for further details.
2. Air Emissions Environmental Activity and Sector Registry (EASR)
Registration for Lower-Risk Small Systems
To see the rest of the posting, see ERO posting 019-1134
Contact Address:
See ERO posting
Effective Date:
July 1, 2021
Decision:
Approved