Act
Proposed changes to the OGSRA to regulate projects to test or demonstrate new or innovative activities, such as geologic carbon storage, and to safeguard people and the environment
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Oil, Gas and Salt Resources Act
Summary of Decision:
Bill 91, Less Red Tape, Stronger Economy Act, 2023 was passed in the Legislature and received royal assent on June 8, 2023.
Through schedule 23 of Bill 91, changes were made to the Oil, Gas and Salt Resources Act to enable the regulation of projects that are to test, assess, pilot or demonstrate an activity, method or technology that is new or innovative to Ontario (special projects), including projects for carbon storage, and to enhance the protection of public safety and the environment, through a variety of tools such as inspector's orders, court orders, and factors for exercising discretion in decision-making, that apply to all activities regulated under this framework. Schedule 23 of the Bill was approved with no changes from the original proposal.
The changes relating to special projects will not be brought into effect through proclamation until regulations are in place to support their implementation. This means that no special projects may seek authorization under this act, including carbon storage, until regulation proposals are developed, consulted on, and approved. These future regulation proposals will address the details of processes and requirements for the designation, authorization, operation and decommissioning of special projects.
The remainder of the changes in Schedule 23 of Bill 91 are now in effect, such as more explicit authority for the ministry to consider past non-compliance when making decisions under this act, and new authorities for inspectors to issue an order to prevent or to minimize the risk of a hazard occurring and for courts to address damage resulting from offences in addition to any other penalty
Analysis of Regulatory Impact:
The proposed changes to enable testing and demonstration projects are not expected to result in any direct compliance costs to regulated entities as they will not come into effect until implementing regulations are in place. Future regulation proposals can be expected to result in direct compliance costs for business, which would be identified and addressed as those proposals are developed.
Proposed changes to enhance or create new tools to protect people and the environment are intended to address operations and operators that are - or are close to being - non-compliant with the requirements of the Act, and therefore no direct compliance costs will result from these proposals.
Through schedule 23 of Bill 91, changes were made to the Oil, Gas and Salt Resources Act to enable the regulation of projects that are to test, assess, pilot or demonstrate an activity, method or technology that is new or innovative to Ontario (special projects), including projects for carbon storage, and to enhance the protection of public safety and the environment, through a variety of tools such as inspector's orders, court orders, and factors for exercising discretion in decision-making, that apply to all activities regulated under this framework. Schedule 23 of the Bill was approved with no changes from the original proposal.
The changes relating to special projects will not be brought into effect through proclamation until regulations are in place to support their implementation. This means that no special projects may seek authorization under this act, including carbon storage, until regulation proposals are developed, consulted on, and approved. These future regulation proposals will address the details of processes and requirements for the designation, authorization, operation and decommissioning of special projects.
The remainder of the changes in Schedule 23 of Bill 91 are now in effect, such as more explicit authority for the ministry to consider past non-compliance when making decisions under this act, and new authorities for inspectors to issue an order to prevent or to minimize the risk of a hazard occurring and for courts to address damage resulting from offences in addition to any other penalty
Analysis of Regulatory Impact:
The proposed changes to enable testing and demonstration projects are not expected to result in any direct compliance costs to regulated entities as they will not come into effect until implementing regulations are in place. Future regulation proposals can be expected to result in direct compliance costs for business, which would be identified and addressed as those proposals are developed.
Proposed changes to enhance or create new tools to protect people and the environment are intended to address operations and operators that are - or are close to being - non-compliant with the requirements of the Act, and therefore no direct compliance costs will result from these proposals.
Analysis of Regulatory Impact:
The proposed changes to enable testing and demonstration projects are not expected to result in any direct compliance costs to regulated entities as they will not come into effect until implementing regulations are in place. Future regulation proposals can be expected to result in direct compliance costs for business, which would be identified and addressed as those proposals are developed.
Proposed changes to enhance or create new tools to protect people and the environment are intended to address operations and operators that are - or are close to being - non-compliant with the requirements of this act, and therefore no direct compliance costs will result from these proposals.
Proposed changes to enhance or create new tools to protect people and the environment are intended to address operations and operators that are - or are close to being - non-compliant with the requirements of this act, and therefore no direct compliance costs will result from these proposals.
Further Information:
Link to Environmental Registry
Proposal Number:
23-MNRF005
Posting Date:
April 3, 2023
Summary of Proposal:
Under the Oil, Gas and Salt Resources Act (the Act), the Ministry of Natural Resources and Forestry regulates the drilling and operation of wells, and associated pipelines and equipment, used for activities such as the exploration and production of oil and natural gas, salt solution-mining, the underground storage of hydrocarbons, and compressed air energy storage projects.
Amendments are proposed to the Act to authorize and regulate projects that are to test, assess, pilot or demonstrate an activity, method or technology that is new or innovative to Ontario. The changes would establish a process to designate these projects as special projects, which may make the Act apply to a project where it would otherwise not have. Carbon storage is one example of this type of project.
If approved, these changes would establish new authorities and tools to adapt authorization processes and requirements where flexibility is needed to address special projects, better addressing innovation and technological advancement to support Ontario's changing energy needs, decarbonization efforts , and reduction of greenhouse gas emissions.
The proposed changes also include measures to enhance the protection of public safety and the environment including a variety of tools such as inspector's orders, court orders, and factors for exercising discretion in decision-making, that would apply to all activities regulated under the Act.
If the proposed changes to the Act are approved, additional regulatory proposals would be developed for consultation, that would address implementation and detailed requirements addressing matters such as special project designations, applications, construction, operations, and decommissioning.
Amendments are proposed to the Act to authorize and regulate projects that are to test, assess, pilot or demonstrate an activity, method or technology that is new or innovative to Ontario. The changes would establish a process to designate these projects as special projects, which may make the Act apply to a project where it would otherwise not have. Carbon storage is one example of this type of project.
If approved, these changes would establish new authorities and tools to adapt authorization processes and requirements where flexibility is needed to address special projects, better addressing innovation and technological advancement to support Ontario's changing energy needs, decarbonization efforts , and reduction of greenhouse gas emissions.
The proposed changes also include measures to enhance the protection of public safety and the environment including a variety of tools such as inspector's orders, court orders, and factors for exercising discretion in decision-making, that would apply to all activities regulated under the Act.
If the proposed changes to the Act are approved, additional regulatory proposals would be developed for consultation, that would address implementation and detailed requirements addressing matters such as special project designations, applications, construction, operations, and decommissioning.
Contact Address:
Royal Assent Date:
August 6, 2023
Decision:
Approved