Regulation - Other
Regulatory and policy proposals (Phase 2) under the Conservation Authorities Act
Regulation Number(s):
n/a
Instrument Type:
Regulation - Other
Bill or Act:
Conservation Authorities Act R.S.O 1990
Summary of Decision:
We are moving forward with Phase 2 regulations to improve the governance, oversight, transparency and accountability of conservation authority (CA) operations. These new regulations and provincial policy build on the first phase of regulations put in place in October 2021 and support recent amendments to the Conservation Authorities Act that focus CAs on their core mandate.
To implement recent amendments to the Conservation Authorities Act, the following regulations and a policy, as listed below, have been finalized under the Act:
1. Ontario Regulation 402/22: Budget and Apportionment. This regulation details CA budget process and municipal apportionment methods and requirements and includes revocation of the current regulations that govern levies.
2. Ontario Regulation 401/22: Determination of Amounts Under Subsection 27.2 (2) of the Act. This regulation details the methods available to CAs to determine amounts owed by their specified municipalities for CA programs and services provided in respect of the Clean Water Act, 2006 and Lake Simcoe Protection Act, 2008.
3. Minister's Fee Classes Policy. This policy is a published list of the classes of programs and services for which a CA may charge a fee.
4. Ontario Regulation 400/22: Information Requirements. This regulation increases transparency of CA operations by requiring the public posting of prescribed information on a Governance section of a CA's website.
5. Ontario Regulation 399/22: Amendment to the Minister's Transition Plans and Agreements for Programs and Services Under Section 21.1.2 of the Act (Ontario Regulation 687/21). This regulation increases transparency regarding the use of user fees for category 3 programs and services (those that a CA determines are advisable to provide in its jurisdiction), where a cost apportioning agreement is in place.
Requirements to increase transparency of CA operations and those related to fees that CAs may charge will be in place by January 1, 2023, while those related to budget and municipal levy apportionment processes will be in place by July 1, 2023, to align timing with CA 2024 budgets.
These regulations and policy will ensure a smooth transition by January 1, 2024 of CAs to the new funding framework and three categories of programs and services that were established by recent amendments to the Act and first phase of regulations.
The regulations and policy:
• reflect what is already working between CAs and municipalities
• build in flexibility where possible
• avoid being overly prescriptive
• recognize differing circumstances at the local level for budget processes due to the range in participating municipalities across CAs and varying CA revenue streams
• recognize that participating municipalities and CAs have established local budget processes designed to meet the needs of their municipalities
To implement recent amendments to the Conservation Authorities Act, the following regulations and a policy, as listed below, have been finalized under the Act:
1. Ontario Regulation 402/22: Budget and Apportionment. This regulation details CA budget process and municipal apportionment methods and requirements and includes revocation of the current regulations that govern levies.
2. Ontario Regulation 401/22: Determination of Amounts Under Subsection 27.2 (2) of the Act. This regulation details the methods available to CAs to determine amounts owed by their specified municipalities for CA programs and services provided in respect of the Clean Water Act, 2006 and Lake Simcoe Protection Act, 2008.
3. Minister's Fee Classes Policy. This policy is a published list of the classes of programs and services for which a CA may charge a fee.
4. Ontario Regulation 400/22: Information Requirements. This regulation increases transparency of CA operations by requiring the public posting of prescribed information on a Governance section of a CA's website.
5. Ontario Regulation 399/22: Amendment to the Minister's Transition Plans and Agreements for Programs and Services Under Section 21.1.2 of the Act (Ontario Regulation 687/21). This regulation increases transparency regarding the use of user fees for category 3 programs and services (those that a CA determines are advisable to provide in its jurisdiction), where a cost apportioning agreement is in place.
Requirements to increase transparency of CA operations and those related to fees that CAs may charge will be in place by January 1, 2023, while those related to budget and municipal levy apportionment processes will be in place by July 1, 2023, to align timing with CA 2024 budgets.
These regulations and policy will ensure a smooth transition by January 1, 2024 of CAs to the new funding framework and three categories of programs and services that were established by recent amendments to the Act and first phase of regulations.
The regulations and policy:
• reflect what is already working between CAs and municipalities
• build in flexibility where possible
• avoid being overly prescriptive
• recognize differing circumstances at the local level for budget processes due to the range in participating municipalities across CAs and varying CA revenue streams
• recognize that participating municipalities and CAs have established local budget processes designed to meet the needs of their municipalities
Analysis of Regulatory Impact:
The regulations and policy are financial and administrative in nature and largely reflect what is currently occurring and set out in existing regulation and/or policy. They:
• support the transition of existing CA funding mechanisms and supporting CA budget processes, previously described in provincial legislation, regulations and policy, to the new legislative funding framework
• impose requirements on CAs to improve transparency of CA operations
New one-time short-term administrative costs are anticipated for CAs and municipalities for staff to learn about the new regulations and policy.
There would also be new administrative costs associated with preparing the budgets under the new regulatory and financial framework.
These costs are anticipated to have a net present value of $3,204,500 over the ten-year period 2023-2032, or an average of $320,450 annually across all 36 CAs and participating municipalities.
Costs for municipalities and for CAs are interrelated. CAs apportion their expenses to municipalities, including costs of programs and services, which means that any increases in costs for CAs would translate to increased amounts paid by participating municipalities.
The new Determination of Amounts Under Subsection 27.2 (2) of the Act (amounts owed by specified municipalities) regulation would not result in a net cost increase to municipalities, but rather, a redistribution of existing costs.
The regulatory impact analysis does not identify any compliance or administrative costs to businesses, the public or non-profit organizations associated with these regulations.
• support the transition of existing CA funding mechanisms and supporting CA budget processes, previously described in provincial legislation, regulations and policy, to the new legislative funding framework
• impose requirements on CAs to improve transparency of CA operations
New one-time short-term administrative costs are anticipated for CAs and municipalities for staff to learn about the new regulations and policy.
There would also be new administrative costs associated with preparing the budgets under the new regulatory and financial framework.
These costs are anticipated to have a net present value of $3,204,500 over the ten-year period 2023-2032, or an average of $320,450 annually across all 36 CAs and participating municipalities.
Costs for municipalities and for CAs are interrelated. CAs apportion their expenses to municipalities, including costs of programs and services, which means that any increases in costs for CAs would translate to increased amounts paid by participating municipalities.
The new Determination of Amounts Under Subsection 27.2 (2) of the Act (amounts owed by specified municipalities) regulation would not result in a net cost increase to municipalities, but rather, a redistribution of existing costs.
The regulatory impact analysis does not identify any compliance or administrative costs to businesses, the public or non-profit organizations associated with these regulations.
Further Information:
Link to Environmental Registry
Proposal Number:
22-MECP004
Posting Date:
January 26, 2022
Summary of Proposal:
Conservation authorities (CAs) play an important role in supporting our communities and ensuring the protection, conservation, and restoration of the environment for the benefit of present and future generations. We are committed to ensuring that CAs are focused on their core mandate, including:
• helping protect people and property from the risk of natural hazards
• conserving and managing CA-owned lands
• legislated roles in drinking water source protection
To implement recent changes made to the Conservation Authorities Act, three new regulations were filed that:
• specify the mandatory programs and services that CAs must provide (Ontario Regulation 686/21 (O. Reg. 686/21): Mandatory Programs and Services)
• set out requirements for transition plans and agreements for programs and services a municipality requests the CA do on its behalf and programs and services a CA decides to adopt to further the purposes of the CAA (Ontario Regulation 687/21 (O. Reg. 687/21): Transition Plans and Agreements for Programs and Services Under Section 21.1.2 of the Act)
• consolidated the conservation area regulations into one Minister's regulation which establishes rules of conduct in conservation areas (Ontario Regulation 688/21 (O. Reg 688/21): Rules of Conduct in Conservation Areas)
To ensure a smooth transition by CAs to the new funding framework by January 1, 2024, we are proposing the next phase of regulatory and policy proposals that would include:
1. A Municipal Levies Regulation that outlines details, through a Lieutenant Governor in Council regulation about:
• the apportionment by CAs of their capital costs and operating expenses to be paid by their participating municipalities through municipal levies
• CA budgetary matters, including requirements that CAs distribute their draft and final budgets to relevant municipalities and make them publicly available
2. A Determining Amounts Owed by Specified Municipalities Regulation that outlines details, through a Minister's regulation, about the methods available to CAs to determine costs specified municipalities may need to contribute for the CA';s mandatory programs and services under the:
• Clean Water Act, 2006
• Lake Simcoe Protection Act, 2008
3. A Fee Classes Policy that outlines classes of programs and services, through a Minister's published list, for which a CA may charge a user fee
4. Complementary regulations to increase transparency of CA operations
The overall proposed approach for these regulatory and policy proposals is to:
• build on what is already working between CAs and municipalities
• build in flexibility where possible
• avoid being overly prescriptive
• recognize differing circumstances at the local level for budget processes due to the range in participating municipalities across CAs and varying revenue streams
• recognize that participating municipalities and CAs have established local budget processes designed to meet the needs of their municipalities
Greater detail on the regulatory and policy proposals can be found in a Consultation Guide available on the Environmental Registry of Ontario.
• helping protect people and property from the risk of natural hazards
• conserving and managing CA-owned lands
• legislated roles in drinking water source protection
To implement recent changes made to the Conservation Authorities Act, three new regulations were filed that:
• specify the mandatory programs and services that CAs must provide (Ontario Regulation 686/21 (O. Reg. 686/21): Mandatory Programs and Services)
• set out requirements for transition plans and agreements for programs and services a municipality requests the CA do on its behalf and programs and services a CA decides to adopt to further the purposes of the CAA (Ontario Regulation 687/21 (O. Reg. 687/21): Transition Plans and Agreements for Programs and Services Under Section 21.1.2 of the Act)
• consolidated the conservation area regulations into one Minister's regulation which establishes rules of conduct in conservation areas (Ontario Regulation 688/21 (O. Reg 688/21): Rules of Conduct in Conservation Areas)
To ensure a smooth transition by CAs to the new funding framework by January 1, 2024, we are proposing the next phase of regulatory and policy proposals that would include:
1. A Municipal Levies Regulation that outlines details, through a Lieutenant Governor in Council regulation about:
• the apportionment by CAs of their capital costs and operating expenses to be paid by their participating municipalities through municipal levies
• CA budgetary matters, including requirements that CAs distribute their draft and final budgets to relevant municipalities and make them publicly available
2. A Determining Amounts Owed by Specified Municipalities Regulation that outlines details, through a Minister's regulation, about the methods available to CAs to determine costs specified municipalities may need to contribute for the CA';s mandatory programs and services under the:
• Clean Water Act, 2006
• Lake Simcoe Protection Act, 2008
3. A Fee Classes Policy that outlines classes of programs and services, through a Minister's published list, for which a CA may charge a user fee
4. Complementary regulations to increase transparency of CA operations
The overall proposed approach for these regulatory and policy proposals is to:
• build on what is already working between CAs and municipalities
• build in flexibility where possible
• avoid being overly prescriptive
• recognize differing circumstances at the local level for budget processes due to the range in participating municipalities across CAs and varying revenue streams
• recognize that participating municipalities and CAs have established local budget processes designed to meet the needs of their municipalities
Greater detail on the regulatory and policy proposals can be found in a Consultation Guide available on the Environmental Registry of Ontario.
Contact Address:
Effective Date:
July 1, 2022
Decision:
Approved