A New Regulation for:

The Green Energy Act, 2009

(Private Sector)

Authors:

Victoria Munro
Marta Swiercz
Erica Ma
Harmandeep Kaur

TABLE OF CONTENTS
PURPOSE ............................................................................................................................................................... 1
SIGNIFICANCE & JUSTIFICATION ............................................................................................................................ 1
GOALS.................................................................................................................................................................... 3
MONITORING AND REPORTING ............................................................................................................................. 4
NON-COMPLIANCE, PENALTIES, ENFORCEMENT .................................................................................................... 6
NON-COMPLIANCE ...................................................................................................................................................6
PENALTIES .................................................................................................................................................................6
ENFORCEMENT .........................................................................................................................................................7
APPROVALS, PERMITS, ASSESSMENTS ................................................................................................................... 7
RENEWABLE ENERGY APPROVAL (REA) .....................................................................................................................7
CLASS EA FOR WATERPOWER PROJECTS ...................................................................................................................8
STANDARD APPROVALS ............................................................................................................................................9
EXCEPTIONS ........................................................................................................................................................... 9
APPENDIX A: ........................................................................................................................................................ 10
DEFINITIONS ...........................................................................................................................................................10
SCHEDULE 1.............................................................................................................................................................10
SCHEDULE 2.............................................................................................................................................................10
SCHEDULE 3.............................................................................................................................................................11
APPENDIX B: ........................................................................................................................................................ 12
FIGURES AND TABLES ..............................................................................................................................................12
APPENDIX C: ........................................................................................................................................................ 14
REFERENCES ............................................................................................................................................................14

A New Regulation for:

The Green Energy Act, 2009
(Private Sector)

PURPOSE
The purpose of this Regulation is to minimize the exploitation of nonrenewable energy sources
for energy production by encouraging the use of green energy in private sector manufacturing
industries in Ontario.

SIGNIFICANCE & JUSTIFICATION

The Green Energy Act, 2009 states that the government of the province of Ontario is dedicated
to encouraging the use of green energy sources, and green technology and projects in the public
sector. Currently, Canada is the worlds eighth largest energy consumer; what is more, Ontario is
home to over 20,000 companies which consume about one-third of all the energy in the
province. While Ontario has significantly improved its overall environmental awareness, such as
creating law for green energy and sustainable resource use, it maintains a major focus on the
public sector. The Ontario energy sector has been undergoing redevelopment of renewable
infrastructure to transition to more sustainable energy sources. At present, over 60% of energy
generated in Ontario is still sourced from nonrenewable resources (including nuclear energy) (as
seen in Figure 2 and Table 1). For this reason, we believe the next step to support the Ontario
energy sector is to make the transition to using more green energy sources, and increase energy
conservation and efficiency. By developing principles based on O. Reg. 397/11, this report
illustrates the proposal for a Regulation outlining the need for green energy use for
manufacturing industries in the private sector. The enactment of this proposed Regulation will
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put more responsibility on the private sector manufacturing industries who consume a
tremendous amount of nonrenewable energy. By doing so, the Regulation aims to reduce the
amount of greenhouse gas emissions and exploitation of nonrenewable energy sources used by
the manufacturing industries. For example, in 2009 USC analysis found that approximately
twenty-five percent of national renewable electricity standard would lower power plant carbon
dioxide emissions by 277 million metric tonnes annually by the year 2025.

In 2010, the Ontario Power Authority began a new incentive program for large industrial
companies to reduce electricity use and increase overall competitiveness. Currently, there are 45
large industrial companies that are eligible to take part in this program. The Industrial
Accelerator is a five-year program that provides monetary incentives for energy-saving projects.
The companies that participate will commit, by contract, to their specific conservation goals
within a designated time period. The reduction in electricity use is an effective way of managing
a companys energy savings and generating operational savings. This program was created to
improve and further drive the use of green technology in the province of Ontario. The acting
Minister of Energy and Infrastructure, Brad Duguid, stated that, Partnering with our largest
energy consumers to reduce their energy will enhance their long-term competitiveness and is part
of Ontarios transformation from being a leader in consumption to a leader in conservation
(Duguid, 2010). This proposal, which aims to create a new Regulation under the Green Energy
Act, 2009, is built upon the general rationale and concepts created by the Ontario Power
Authority Industrial Accelerator program.

This idea for a new Regulation focused on the private sector is significant because it aims to
create the long term goals of sustainable growth within industrial practices, reduction of
excessive exploitation of nonrenewable energy sources, and enforcement of the production of
green energy. Additionally, the implementation of this Regulation will increase job growth
within manufacturing industries and within the Ministry. For example, it may increase
environmental positions within the manufacturing industries to develop plans, reports, and
monitor energy consumption rates in order to comply with the Regulation. This proposed
Regulation will target manufacturing industries of medium and large business sizes (see
Appendix B: Table 2).

This proposal aims at the following outcomes,

Incorporation of 20% green energy sources by the year 2026

Incorporation of at least 30% green energy sources by the year 2036

Strict enforcement of energy management plans

Strict penalties for non-compliance

Annual energy and management reports.

The particulars of these outcomes are described in detail throughout this proposal.

GOALS
The goal of this proposed Regulation is to enforce manufacturing industries to incorporate a
minimum percent of their consumed energy generated from green energy sources. This goal will
be reached by allotting these industries from January 1, 2016 until December 31, 2017 to create
an energy consumption report of their current usage over the this two year period, and to create
an energy management plan to reach the aforementioned goal. From January 1, 2018 until

December 31, 2026 these manufacturing industries will have this allotted time to put their energy
management plan into action and reach the goal of a minimum twenty percent energy from green
energy sources. The green energy can be provided by external parties or sourced by on-site
technology. See Appendix B Figure 1 for the complete timeline.

Beginning on January 1, 2027 all manufacturing industries will have to have a minimum of
twenty percent of their energy consumption generated from a green energy source every year.
From this date, there will be energy audit reports and inspections multiple times annually to
ensure full compliance from all manufacturing industries. After a 10 year period of adjustment,
the percentage of green energy usage will increase incrementally over the next 10 years to reach
30% of total energy use by December 31, 2036.

For example, manufacturing industry A consumes 10 PetaJoules per year as a part of their
embodied energy, and of this total consumption they will have to generate 20% or 2 PetaJoules
from green energy sources by 2026. This incorporation of a private sector section to the
Regulation allows for a level playing field for all manufacturing industries in Ontario.

MONITORING AND REPORTING

The aforementioned management plan must include the requirements as listed,
a) A summary of the annual non-renewable energy consumption by industry for all different
operations involved in manufacturing.
b) A description and projection of the estimated results of current practices and the proposed
methods of incorporating green energy sources to reduce the amount of fossil fuels
consumed by manufacturing industries.

c) A synopsis of the progress of these methods to incorporate green energy sources over the
8 year period.
d) Action outline in order to reach the goal of increasing the usage of green sources to a
minimum of twenty percent provided to come into force by January 1, 2018.

The summary reports shall include,

a) The location and type of manufacturing industry.
b) The manufacturing industries total embodied energy of product(s) (see Appendix A for
definition of embodied energy).
c) The size of the manufacturing industry, total area in square meters.
d) The total use of green energy sources.
e) The type of green energy sources used and from where.
f) The usage rate of non-renewable energy sources.
g) Total energy consumption rates provided in Petajoules (PJ).
h) Summary of the actual results of the renewable energy use achieved.
From January 1, 2018 up until December 31, 2026, each manufacturing industry operating in
Ontario shall use their management plan to commence their proposed actions. Each
manufacturing industry shall use the Best Available Technology Economically Achievable
(BATEA) in order to obtain their results. Each manufacturing industry is to monitor their
yearly energy consumption and provide an updated report per annum that shall be provided to
the Minister by December 31st of each year.

These updated reports must include,

a) Current energy management.
b) Summary of current green and nonrenewable energy consumption rates.
c) A progress report stating the percentage of nonrenewable energy sources used.
d) Changes, if any, of or new proposed action for energy management.
e) Goals for the following year.
By December 31, 2026, all manufacturing industries operating in Ontario shall submit their
summary report to the Minister providing proof of their energy consumption being generated
from a green energy source. Beginning January 1, 2027, all manufacturing industries shall
submit a report to the Minister every two years outlining their progress.

NON-COMPLIANCE, PENALTIES, ENFORCEMENT

NON-COMPLIANCE
Beginning January 1, 2027, unannounced inspections and yearly audits shall be conducted in
order to ensure compliance. The non-compliance of the following will result in penalties as listed
below,

Providing the energy management plan by December 31, 2017 to the Minister.

Annual energy consumption report.

Proof of reduction of non-renewable energy usage as outlined in the summary reports.

Meeting the 20% diversion of energy usage to green energy sources by January 1, 2027.

Meeting the conditions of stop orders/revoke orders/control orders/ management orders.

Failing to comply with approval, permit, and assessment requirements.

PENALTIES

Suspension of the approvals and/or permits.

All fines will be decided on a case-by-case manner by the Minister.

Daily fine from day of non-compliance.

The Minister or a provincial official, where they see fit, can issue stop orders, revoke orders,
control orders, management order to the owner/person in charge of environmental management
at the manufacturing industry to mitigate non-compliance. The person(s) given the order must
comply within the time period dictated by the Minister or provincial official or will be found in
non-compliance.

ENFORCEMENT
The requirements of this proposed Regulation will be strictly enforced; however, the
manufacturing industries have the freedom to meet the requirements using the green technology
of their choice, i.e. using Best Available Technology Economically Achievable.

APPROVALS, PERMITS, ASSESSMENTS

RENEWABLE ENERGY APPROVAL (REA)
Manufacturing facilities may choose to have their renewable energy provided by external parties
or sourced by on-site technology. In any case, the province of Ontario requires renewable
energy approvals for most projects. These approvals are completed in accordance with O. Reg.
359/09: Renewable Energy Approvals.
In general, approvals are required for,
(a) Wind projects:

Class 2 facilities: power output (nameplate capacity) of > 3kW but < 50 kW.

Class 3 facilities: power output of greater than or equal to 50kW and sound power <102
dBA.

Class 4 facilities: power output of greater than or equal to 50kW and sound power greater
than or equal to 102 dBA.

(b) Solar projects:

Class 3 facilities: mounted on the ground with power output of greater than 10 kW,
including noise assessment.

o Exemptions: Class 1 and Class 2 solar facilities.

(c) Bio-Energy projects: The facilities defined under the Renewable Energy Approval
Regulation,
o Wind facilities
o Solar facilities
o Biofuel & Biogas
o Thermal Treatment facilities
o Anaerobic digestions
Further information regarding approvals and exemptions for renewable energy sources can be
found under O. Reg. 359/09: Renewable Energy Approvals under Part V.0.1 of the Act.

CLASS EA FOR WATERPOWER PROJECTS

Water projects:

Waterpower projects with less than 200000 kW.

Water power projects will be completed in accordance with the Class EA for WaterPower
Projects, where further information can be found.
Exemptions: projects over with power larger than this will complete an individual Environmental
Assessment.

STANDARD APPROVALS
Standard approvals will be required for,
(a) Increase or modification in time frame to complete the goal date for designated renewable
energy incorporation.
o The manufacturing industry will need to complete an updated management plan for
reaching the newly designated date as defined in the Approval.
(b) Requiring an increase in fossil fuel consumption to fuel expansion and redevelopment of
manufacturing industry.

EXCEPTIONS
All exceptions need to be approved by the Minister, and awarded a Certificate of Approval.
1) Small sized businesses (see Appendix B: Table 2).

APPENDIX A:
DEFINITIONS
Manufacturing Industry means the division of manufacture and industry based on the creation,
processing, or formulation of products from goods and raw materials. (As listed in Schedule 1)
Green Energy Sources means the energy from a renewable source that is not depleted when
used (As listed in Schedule 2).
Embodied Energy refers to the sum total of the energy consumed in the inputs of materials,
processes of extraction and/or production of goods or services, processing and manufacturing of
these resources, transportation and delivery of the product.
The energy calculation does not include,
(a) The energy required for processing, etc. after the product or service has been transported to a
secondary location
(b) Any energy put into the product or service at another location prior to acquisition by the
manufacturing industry in question
As seen in Appendix B: Figure 1.
Management Plan means the plan for energy consumption for the manufacturing industry
Minister means the Minister of Environment and Climate Change
Non-Renewable Energy Sources means an energy source that cannot be readily replaced by
natural processes on a human time scale. (As listed in Schedule 3)

SCHEDULE 1
Manufacturing Industries are as prescribed,
(a) Pulp and Paper, including timber
(b) Textiles
(c) Glass
(d) Automotive
(e) Mining
(f) Pharmaceuticals
(g) Agro-based, including
(h) Plastics, Rubber, PetroChemical
(i) Metals (Aluminum, Copper and Nickel, Iron and Steel)
(j) Machinery
(k) Electrical

SCHEDULE 2
Green energy sources include,
(a) Solar Power
(b) Wind Power
(c) Geothermal Energy
(d) Biofuel (biodiesel, biogas)
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(e) Hydro

SCHEDULE 3
Nonrenewable energy sources include,
(a) Oil
(b) Natural gas
(c) Fossil fuels

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APPENDIX B:
FIGURES AND TABLES

January 1, 2016
- December 31,
2017

January 1, 2018
- December 31,
2026

Monitor, provide
audit, and energy
management
plan.

Implementation
of energy
management plan
and sumary
report.

December 31,
2026
Submission of
summary report.

January 1, 2027
Minimum
incorporation of
20% renewable
energy.

December 31,
2026
Minimum
incorporation of
30% renewable
energy.

Figure 1. Flow chart outlining the dates associated with this Regulation.

Figure 2. Energy generation in Ontario as of September

21, 2015 (taken from IESO).

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Table 1. Total energy supplied and percentage of energy production of energy generating
resources in Ontario (as of September 21, 2015):
Energy
Supply

Total Energy Supplied

(MW)

Percentage of Total Energy Generation in

Ontario

Nuclear

12,978

37 %

Gas/Oil

9,920

28%

Hydro

8,462

24%

Wind

3,209

9%

Biofuel

445

1%

Solar

140

0.4%

Table 2: Business size classification

Business size classification

Number of employees

Small

1-99 employees

Medium

100-499 employees

Large

500 or more employees

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APPENDIX C:
REFERENCES
Benefits of Renewable Energy Use. (n.d.). Retrieved November 18, 2015, from
http://www.ucsusa.org/clean_energy/our-energy-choices/renewable-energy/publicbenefits-of-renewable.html
Butters, T. (2010). Ontario Power Authority. Retrieved from
http://www.powerauthority.on.ca/news/energy-efficiency-program-launched-ontariosindustrial-sector
Energy. (2015). Retrieved from http://www.nrcan.gc.ca/earth-sciences/geography/atlas
canada/selected-thematic-maps/16872
Government of Canada, S. C. (2015). Manufacturing sales, by subsector, by province and
territory (Ontario). Retrieved November 18, 2015, from http://www.statcan.gc.ca/tablestableaux/sum-som/l01/cst01/manuf33g-eng.htm
Industrial Consumption of Energy (ICE) Survey: Summary Report of Energy Use in the
Canadian Manufacturing Industry. (2010). Retrieved from
http://oee.nrcan.gc.ca/publications/statistics/ice10/pdf/ice10.pdf
Manufacturing. (n.d.). Retrieved from
http://www.thefreedictionary.com/Manufacturing+industry
Ontario Power Stats. (n.d.). Retrieved from http://canadianenergyissues.com/ontario-power-stats/
Small, Medium-sized and Large Businesses in the Canadian Economy: Measuring Their
Contribution to Gross Domestic Product in 2005. (2012). Retrieved from
http://www.statcan.gc.ca/pub/11f0027m/2011069/part-partie1-eng.htm

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