Ontario Waterpower Policy Initiatives The importance of being earnest Paul Norris President Ontario Waterpower Association

Banning small hydro dams for good August 11, 2004

Energy Policy Renewable Energy Objective 1350MW by MW by 2010 First RFP for 300MW issued All waterpower eligible “Bill 100” – Amendment to Electricity Act Ontario Power Authority created Waterpower recognized as renewable Streamlined procurement process

Environmental Policy Proponent-driven environmental assessment All new development requires screening Most re-development requires screening Federal-Provincial coordination agreement OWA pursuing a “Class EA” for the sector

Economic Policy Revised taxation regime – January 2001 Waterpower “rentals” and property tax based on a % of Gross Revenue, as defined Incremental %’s based on energy generated All new development, redevelopment exempt for 120 months after initial production Additional capital tax, corporate tax exemptions

Resource Management Policy Water Management Planning Specific to “hydro” rivers Focused on water levels and flows Balance of social, economic, environmental objectives Address opportunity of commercial market Introduction of “Natural Flow Regime” paradigm

Development Policy No “new” development since 1993 Proposed policy framework released June 2004 Competitive process to “development opportunity” Small (<1MW) on a first-come basis Emphasis on First Nations involvement No development within parks and protected area Proliferation of new waterway parks

Water Policy Source Water Protection Planning Waterpower facilities require “Permit ton Take Water” Revisions to permit objectives to address social, environmental, ecological considerations Potential for “water charge” OWA advocating exemption based of regulatory equivalence

Infrastructure Policy Dam Safety Regulation Initiative Dam safety requirements Public safety around dams Provincial Technical Guidelines First formal revision since 1977 Considerable implications for existing structures “Back door” for dam safety?

Policy debates There is no hydro left Run of River is/isn’t better Renewable is/isn’t Green Public ownership is better/worse Waterpower is cheap/expensive

“Ontario still has the potential to add 3,000 to 6,000 megawatts of hydroelectric capacity to its system. New hydro developments will enable Canada to fulfil its Kyoto commitments to curb greenhouse gas emissions, Duncan said.” August 12, 2004

Thank you