CME-MOECC Day Ministry of Environment and Climate Change Modernization of Approvals Environmental Innovations Branch June 1, 2016

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1 CME-MOECC Day Ministry of Environment and Climate Change Modernization of Approvals Environmental Innovations Branch June 1, 2016

2 Context MOECC historically receives up to 2,000 air and noise Environmental Compliance Approval (ECA) applications annually. - Current backlog of over 1,400 air and noise ECA applications with an average approval time of 700 days. CME s proposal towards a GHG reduction strategy for Ontario (May 2015) highlighted need to promote industrial competitiveness, investment, innovation, & growth by focusing on ways to accelerate technological progress. - Supported through simple and low cost regulatory compliance requirements including efficient approvals Fall Economic Statement/ 2016 Spring Budget Ministry of the Environment & Climate Change (MOECC) committed to: 1. Reducing, by the fall of 2017, the amount of ministry time taken to review air and noise environmental compliance approvals by at least 50 percent. 2. Implementing a one-year service standard for higher-risk environmental compliance approval requests received after

3 Approach 1. Development of a risk-based approach for Reg. 419 s.9 air and noise approval requirements. - low to medium risk approvals can shift to Environmental Activity & Sector Registry (EASR) process. - still capturing toxic contaminants of concern through ECAs. 2. Development and implementation of a innovative technology verification pilot program - targeted for this year, with intention to develop long term program. EASR and Innovative Technology Verification Program (ITVP) allow for faster more streamlined approval processes to: - address barriers to innovation; - promote economic competitiveness; and - facilitate transition to low carbon economy. 3

4 1. Approach to Air and Noise EASR Risk Exempt from approval EASR Registration only EASR Registration with Assessment Full ECA Activities/Sectors that should not/will not require registration or approval. Examples: fume hoods, public/private schools, HVAC systems, standby power systems. Activities/Sectors that will Register but not do Modelling. Examples: end of life vehicles, non-haz waste transportation, commercial printing facilities, automotive refinishing. Activities/Sectors that will not need an ECA but will require O. Reg. 419/05 Emission Summary and Dispersion Modelling (ESDM) assessment and potentially an odour and/or acoustic assessment. Examples: food processing, cabinet making, most general manufacturing. Sectors defined in schedule 4/5 of O. Reg. 419/05, plus any others where analysis shows significant release of contaminants of concern including noise. Examples: refineries, mines, chemical manufacturing, fossil fuel power generation. 4

5 1. Key to Successful Air and Noise EASR: Managing Risk The new assessed EASR category will continue to enforce the current air/noise standards that exist in the ECA process and will ensure environmental protection through: Enhanced Qualified Persons process: - EASR proposal includes requiring a Qualified Person (P.Eng) to complete required technical assessments (e.g. ESDM). Development of an enhanced audit process: - Ministry commitment to review a number/percentage of EASRs on an annual basis to ensure ESDMs and other required assessments are completed following Ministry guidelines and expectations. Development of a Compliance Protocol: - Comprehensive audits will be taken, similar to where an ECA is provided, and could include issuing an Order or requiring a facility to obtain an ECA. Increased Public Transparency: - Make available, online, information obtained from required technical assessments required for EASR eligibility (e.g. Emission Summary Table). Creation of new Technical Guidance: - Development of new technical guidance documents will be required to ensure Ministry expectations are clear and are adhered to. These may include noise and odour guidance documents. 5

6 2. Innovative Technology Verification Pilot (ITVP) Objectives: Reduce barriers to adopting innovative new technologies. Deliver information to encourage and promote the development of new technologies. Design a clear and scalable process that focuses on environmental outcomes. Establish a robust evaluation and verification of performance that is results driven. Develop strategy for broader implementation post pilot. Timing: Beta testing throughout summer Launch pilot in September

7 Overall ITVP Concept External Accreditation Body (RABQSA) Routine/ Low Risk ITVP Fast Track Process Unusual/ Complex/ High Risk Yes No Normal ECA/Permissions Process and Interim Tools 7 Path if there is a site specific project in Ontario

8 Next Steps and Timing Spring/Summer 2016 Air and Noise EASR Complete Technical and Policy Analysis. Continue identification of additional rules based EASRs and exemptions. Draft Technical Discussion Paper (EBR posting Summer, 2016). Odour Policy Framework Development. Continue work with PEO on Practice Standard. Innovative Technology Verification Pilot (ITVP) Development of program components: Verification Report Criteria, Business Processes, Scope of Accreditation Process. Development of pilot: transfer payment agreement with accreditation body, selection of VOs for pilot, and selection of pilot technology. Report on progress (Summer 2016). 8