Official Plan and Zoning By-law Provisions for Renewable Energy Generation Facilities (REGF)

Provincial Authority to Approve REGF

The repeal of the Green Energy Act in 2019 restored municipal authority to regulate renewable energy generation land uses in Ontario, offering a new opportunity for municipal input on the siting of such infrastructure.

The Ontario Planning Act sets the rules for establishing municipal zoning by-laws, permitting municipalities to regulate the location of any energy generation and storage uses that are not undertaken by a Transmitter (Hydro One Corporation) or Ontario Power Generation, which are exempt from zoning under Section 62(1). The exemption does not apply to natural gas power plants where they are run by independent operators, providing limited opportunity for additional zoning provisions beyond the renewable sector.

The majority of REGF projects in Ontario are carried out by private enterprises or as joint projects with OPG or Hydro One Corporation, meaning that the majority will be subject to municipal zoning regulations.

There are certain classes of REGF projects which must obtain a Renewable Energy Approval (REA) from the Ministry of Environment, Conservation and Parks per Part V.0.1 of the Environmental Protection Act and O. Reg. 359/09. Provincial approval submission requirements vary depending on the project, however in all cases the applicant must provide evidence of both compliance with municipal policies and local public consultation. REA required public consultation is independent of any consultation that may be required by the municipality.

Zoning Intent

It is not the City’s intent to duplicate the provincial approvals process for renewable energy generation infrastructure. Rather the focus of the zoning by-law is to build upon existing provincial review processes to address local land use compatibility concerns and direct such development to the most appropriate locations within the parameters directed by the Official Plan.

Energy generation and storage infrastructure is not something that has previously been regulated by municipalities and requires thoughtful consideration of potential impacts from local considerations of potential land use conflicts, to the energy, resiliency, and climate impacts that may be associated with limiting opportunities for new energy generation projects.

The City will not be conducting, evaluating or commenting on independent health and safety research with respect to renewable energy generation and storage infrastructure. Staff will be looking to the expertise and direction provided by the Ministry of Public Health, Ministry of Environment, and the Ministry of Energy in incorporating health, safety, and environmental considerations that may be associated with renewable energy generation and storage infrastructure into zoning and/or other potential municipal review processes such as Site Plan Control.

Official Plan

Section 4.11 of the Official Plan provides guidance on where large-scale renewable energy facilities that are subject to a provincial procurement and approvals processes may be permitted. The OP also provides direction for where ‘subordinate’ renewable energy generation infrastructure that is not subject to provincial approvals, due to limited energy generation potential, may be permitted. Note that small-scale accessory use energy generation infrastructure, such as rooftop solar panels or a residential geothermal installation, is currently and will continue to be permitted in the zoning by-law everywhere that it functions to aid and contribute to the principal use of land.

As a principal use of land, the Official Plan permits renewable energy generation facilities in the following designations:

• Rural Countryside (see Schedule B9)

• Greenbelt Rural and Greenbelt Facility (see Schedule B9)

• Natural Environment Area - Greenspace sub-designation (see Schedules C11-A, C11-B and C11-C)

As a subordinate use of land (ancillary to a principal use), the Official Plan also permits renewable energy generation facilities in the following designations:

• Agricultural Resource Area (see Schedule B9)

• Rural Industrial and Logistics (see Schedule B9)

Zoning By-law

On February 22, 2023, City Council approved a motion directing staff to develop zoning provisions for renewable energy generation facilities (in accordance with Section 4.11 of the OP) in advance of the new Zoning By-law. The IESO LT2 RFP process is geared towards independent REGF projects that are not exempt from zoning under provincial legislation.

On July 12, 2023, Council approved amendments to the definition of Utility Installation in the Zoning By-law to exclude REGF. The amendment had the effect of recognizing REGF as independent from other types of Utility Installations. This change was made to conform with the policies within Official Plan Section 4.11. The new land use definitions are as follows:

Utility installation means the equipment used to make or deliver a utility product, commodity or service and includes the actual building, plant, works, utility line, tower, relay, pedestal, and may also include a storm water management facility, but excludes antenna systems and renewable energy generation facility

Renewable energy generation facility means a facility as defined in the Electricity Act, 1998, S.O. 1998, C. 15 Sched A, and not exempt under section 62(1) of the Planning Act, R.S.O, 1990, c. P.13.

Some renewable energy generation facilities, built in accordance with the Building Code, are exempt from zoning by-laws and therefore currently allowed. These include:

• roof or wall-mounted solar projects,
• roof or wall-mounted thermal air and thermal water projects and;
• ground-source heat pumps

(Source: O. Reg. 508/18: Designations Under Part II.3 of the Act)

Currently, renewable energy generation facilities that require provincial approval (e.g. wind and solar farms, bio-energy facilities of a certain size) are subject to a Zoning By-law Amendment application in order to be permitted. It is estimated that the next round of provincial procurement for such facilities will begin in the Fall of 2025, which is known as the LT2 procurement process. Staff continue to engage with the IESO as part of this process. At the same time, staff are currently exploring options to introduce provisions for accessory wind facilities.