WHEREAS the Enbridge Gas has shared with Middlesex Centre key messages
regarding the Ontario Energy Board’s Leave to Construct (LTC) process, entitled
“reducing red tape for more cost-effective, timely energy connections in Ontario:”
AND WHEREAS Middlesex Centre supports and wishes to endorse the
recommendations put forward by Enbridge Gas in order to expedite the installation of
natural gas to rural, remote or underserved communities such as Middlesex Centre;
NOW THEREFORE BE IT RESOLVED:
THAT the Municipality of Middlesex Centre petition the Ontario Government to expedite the implementation of the following recommendations:
AND THAT the Government of Ontario move to modernize the Ontario Energy Board’s
(OEB) Leave to Construct (LTC) process for smaller pipeline projects in order to bring
reliable, affordable energy options to communities, homes and businesses in a more
cost-effective and timely manner;
AND THAT the LTC cost threshold be updated from $2M to $10M for hydrocarbon
lines (by amending Ontario Regulation O.Reg.328/03) while maintaining current
requirements and expectations for Indigenous consultation and environmental review
for projects greater than $2M and less than $10M;
AND THAT these outdated regulations are causing the LTC to apply far more broadly
than intended when it was established over 20 years ago due to increased regulatory
and cost pressures, as well as inflation, virtually all gas pipeline projects are now
greater than $2M rendering the threshold meaningless;
AND THAT roughly 0.5 KM pipe in urban settings now often exceeds the $2M
threshold;
AND THAT modernizing these outdated regulations would reduce delays and costs
for economic development initiatives including transit projects, community expansion
projects, housing developments, connections for low carbon fuel blending (e.g.,
renewable natural gas, hydrogen) as well as residential and business customer
connections;
AND THAT based on OEB’s performance standards, this proposal would save
approx. 5-7 months of regulatory process which is in addition to the time needed to
undertake Indigenous consultation and environmental review and prepare an
application to the OEB;
AND THAT the cost of preparing and having a LTC application heard ranges from
approx. ~$50,000 to ~$200,000, which is passed on to customers;
AND THAT while no cost-based threshold exists for electricity lines, there are a
range of exemptions ensuring that LTC is only required for significant electricity projects
and the proposed changes would help ensure that, consistent with electricity projects,
LTC for hydrocarbon lines would only be required for significant projects;
AND THAT increasing the cost threshold to $10M would closer align Ontario with
other Canadian jurisdictions (e.g., in B.C., these thresholds are $15M for electricity and
$20M for natural gas);
AND THAT this resolution be circulated to the President of AMO, Colin Best, Premier
Doug Ford, the Minister of Energy, Todd Smith, The Minister of Finance, Peter
Bethlenfalvy and all regional municipalities requesting support of the proposed changes
regarding reducing red tape for more cost-effective, timely energy connections in
Ontario.