Ontario Budget 2007: Chapter I: Investing in People and Expanding Opportunity
Section E: Expanding Opportunities for a Greener Ontario
Overview
Ontario’s future well-being and long-term prosperity depend on both a strong economy and a sustainable, healthy environment. The McGuinty government is committed to expanding opportunities for a greener Ontario.
This spring, the government will present a plan to establish a greener economy in Ontario, including addressing air quality and climate change in a way that also strengthens Ontario’s economy.
To build on the government’s sustained efforts to improve the environment and the economy, this Budget proposes close to $125 million in immediate initiatives to further establish the foundation for environmental action.
To encourage individuals to support energy efficiency, the government will invest $24 million to provide Ontario homeowners with rebates of up to $150 for home energy audits. The government will also allocate $1.5 million to Project Porchlight, which delivers energy-efficient light bulbs to Ontario homes.
Trees help remove carbon dioxide from the air. In this Budget, the government is providing $2 million to the Trees Ontario Foundation, an organization dedicated to planting trees throughout Ontario.
Innovation is key to a greener economy. The government is providing $6 million to the Ontario BioAuto Council, a multi-industry initiative to position the province as a global leader in manufacturing auto parts and other materials from agricultural and forestry feedstocks. The government is also investing $15 million in the Ontario Centres of Excellence. Investments in lightweight and bio-based materials, along with the development of alternative fuels, can lead to the clean car technologies of the future.
The government is providing $21 million to Queen’s University, which is working in partnership with the private sector to establish a convergence centre for bio-products and bio-materials. The Province is providing $6 million to Lakehead University, which is building its capacity to contribute to the competitive and sustainable development of Ontario’s boreal forest. As well, the government is providing $3 million to the University of Ontario Institute of Technology, which is developing its capacity in hydrogen technology research.
Green communities enhance Ontario’s quality of life. Building on the Move Ontario priorities announced in the 2006 Budget, construction will begin on the Toronto–York subway, Brampton AcceleRide and Mississauga Transitway, easing traffic and reducing greenhouse gas emissions. Provincial gas tax revenues to support municipal transit will reach $313 million in 2007 and will total $1.6 billion by 2010. This Budget also announces a doubling of the Rural Infrastructure Investment Initiative to $140 million. The initiative supports municipal water and wastewater infrastructure.
The government recognizes that several Ontario communities have a high number of brownfield properties that may act as a barrier to development in strategic locations and could be returned to productive use. The government is providing $11 million to Hamilton, Cornwall, Brantford, St. Catharines and the University of Ottawa.
The Budget also increases the government’s investments in Ontario’s precious natural resources, including $28 million over four years to support the Drinking Water Stewardship Program to protect water sources from contamination.
Since taking office in 2003, the McGuinty government has taken a number of significant measures to improve air quality, protect water and land, manage waste and encourage a culture of conservation. Over the past three years, generation from coal plants has fallen by about 30 per cent, representing a large reduction in greenhouse gas emissions. The phase-out of coal-fired electricity plants will represent, when complete, a reduction of up to 30 million tonnes of greenhouse gas emissions, the single largest reduction of emissions in Canada.
Significant progress has been made, but more effort is required. The government’s major plan to protect the environment and establish a greener economy will be unveiled this spring.
The Clean Air and Climate Change Trust
The federal government has announced the establishment of a trust for clean air and climate change. The $1.5 billion trust recognizes the principle of equitable treatment of Canadians and is providing Ontario with $586 million.
The federal trust is an important investment that will assist the Province with climate change initiatives. Funding would be applied to ongoing and new Ontario projects and programs that support clean air.
To date, the Ontario Government has advanced significant climate change initiatives, including more than $84 million over the next three years to develop and implement policies to monitor, analyze and address smog and air toxins; nearly $380 million over the next three years to expand the GO Transit system in key commuter corridors; and $3.9 million to establish a bio-energy research centre associated with the Atikokan Generating Station. In addition to the nearly $125 million in measures announced in this Budget, the government will have more than $200 million over the next three years to fund further climate change initiatives.
Incentives for Early Actions
In addition to the measures introduced by the Ontario Government since 2003, this Budget introduces several new initiatives to improve air quality and address the challenge of climate change. These measures take immediate action in advance of an upcoming spring announcement of a plan to establish a greener economy in Ontario and address air quality and climate change.
The government is providing $2 million to the Trees Ontario Foundation. Accelerated tree planting helps remove carbon dioxide from Ontario’s air.
The simple act of replacing a light bulb is the most accessible action available to people to conserve electricity. Based on their proven success in Guelph, Thunder Bay, Ottawa and the Yukon, the government will be providing Project Porchlight with $1.5 million to enable local volunteers to deliver an energy-efficient light bulb to over 500,000 Ontario homes this summer. The energy savings from this will be enough to power over 5,200 homes a year.
Tax Initiatives
The Ontario Government has several tax initiatives in place that support energy conservation in the province.
- To promote the use of fuel-efficient hybrid vehicles in Ontario and support the auto industry’s efforts to develop improved vehicle technology, the Province provides a retail sales tax (RST) rebate for qualifying hybrid vehicles, to a maximum of $2,000.
- The rebate for hybrid vehicles is an element of the RST rebate for alternative fuel vehicles. The RST paid on vehicles powered by alternative fuels is refunded, to a maximum of $750 for propane vehicles and $1,000 for vehicles powered by any other alternative fuel.
- There is also a temporary RST rebate for solar, wind, micro hydro-electric and geothermal energy systems installed into residential premises. See Chapter III: Ontario’s Tax System Supports Expanded Prosperity for more details.
Ontario’s tax system also provides support for the conservation of ecologically sensitive land certified under the Ecological Gifts Program. Any gain arising from a qualifying donation of such land made after May 1, 2006 is exempt from corporate and personal income tax and from corporate minimum tax.
To encourage homeowners to undertake energy audits, the government is providing $24 million over four years to help lower the cost of a home energy audit by up to $150. This new initiative will complement the recently announced federal ecoENERGY Retrofit Program, which provides financial support and information for energy retrofits in homes, as well as in small buildings and industries.
In February 2007, the Province introduced Bag It Back, a new deposit return program for recycling wine, beer and spirit containers, which encourages Ontarians to return empty containers for a refund, resulting in less waste going to landfill. This program will help divert about 25,000 to 30,000 additional tonnes of glass from landfills — which is equivalent to about 80 million bottles. The new container return program will also free up space in Blue Boxes, giving municipalities the opportunity to expand recycling programs.
Innovation for Jobs and a Green Economy
It is well recognized that a key element in addressing climate change is investing in the development of new environmental technology.
In this Budget, the government is providing $6 million to the Ontario BioAuto Council, a multi-industry initiative to position the province as a global leader in manufacturing auto parts and other materials from agricultural and forestry feedstocks. This builds on the Premier’s announcement on March 8, 2007 of a $5.9 million investment in the Ontario BioCar Initiative, a research project to turn Ontario’s harvest into viable materials for the auto industry.
The government is also investing $15 million in the Ontario Centres of Excellence, which promotes linkages between academia and businesses to bring energy innovations to market. Ontario is well positioned to tap into new markets for low-carbon energy technologies, including alternative fuels such as hydrogen. Investments in lightweight and bio-based materials, along with development of alternative fuels, can lead to the clean car technologies of the future.
The government is providing $21 million to Queen’s University, which is working in partnership with the private sector to establish a convergence centre for bioproducts and biomaterials that will help make Ontario a global leader in the field of high-value-added, environmentally sustainable manufacturing.
The Province is providing $6 million to Lakehead University, which is building its capacity to contribute to the competitive and sustainable development of Ontario’s boreal forest.
The government is providing $3 million to the University of Ontario Institute of Technology (UOIT), which is developing its capacity in hydrogen technology research.
The government is also allocating $400,000 to the Durham Strategic Energy Alliance, an organization of industry, academia, local and regional Durham governments committed to developing sustainable energy solutions for Ontario.
As of January 1, 2007, gasoline sold in Ontario is required to contain an average of five per cent ethanol, helping reduce greenhouse gas (GHG) emissions equivalent to removing 200,000 cars from the road each year. The government’s $520 million Ontario Ethanol Growth Fund complements this measure by supporting the production of ethanol fuel in Ontario.
Investments in Green Renewable Energy and Conservation
The government has set targets to double renewable energy sources including wind, solar and water to 15,700 megawatts (MW) by 2025 — making Ontario a leader in clean energy.
Seven energy-efficient combined heat-and-power cogeneration projects totalling 414 MW are among the new supply projects currently underway. These projects include a Thorold paper mill, a Ford plant in Windsor, and a plant to serve a Sault Ste. Marie steel mill.
To encourage smaller-scale, distributed generation in Ontario, the government has passed a regulation on net metering to enable homeowners, farms and businesses generating renewable electricity to receive credit for the excess electricity they produce. In addition, the Ontario Power Authority (OPA) has a standard offer program aimed at small-scale generation that will be connected to the lower-voltage distribution system, increasing the availability of renewable power and promoting economic development within communities. As of February 27, 2007, 22 projects representing more than 140 MW had been awarded under this program. The program is the largest of its kind in North America and is expected to add 1,000 MW of clean energy to the grid over the next 10 years.
The government has also directed that an aggressive conservation and demand management goal be built into the OPA’s plan, with a reduction in projected peak electricity use by 1,350 MW across Ontario by 2007, an additional 1,350 MW by 2010, and 3,600 MW more by 2025 — for a total of 6,300 MW by 2025.
- The government has so far set in motion conservation programs and initiatives representing more than $2 billion over the next several years.
- To promote conservation, the government is also proceeding with the installation of 800,000 smart meters in Ontario homes and businesses by the end of 2007, and all homes and businesses by the end of 2010, allowing electricity consumers to reduce and shift their electricity demand in response to electricity prices, and helping to meet the Province’s conservation target.
Building Green Communities
Sustainable Transportation
New investments in transit across the province through the government’s Move Ontario program will help reduce gridlock, air pollution and GHG emissions by providing alternatives to driving. For example, the Toronto–York subway will help reduce 250,000 tonnes of GHG annually and eliminate 30 million car trips annually.
Overall, the Move Ontario transit projects have the potential to enable 42 million more transit rides in the GTA, resulting in 35 million fewer car trips on Ontario roads and highways each year. These projects have the potential to create 27,000 jobs. See Section G: Investing in Ontario’s Infrastructure for further details.
Brownfields Reform
Cleaning up brownfield properties has both environmental and social benefits and is important to the economic vitality and growth of Ontario’s communities.
Several Ontario communities have a high number of brownfield properties that may act as a barrier to development in strategic locations and could be returned to productive use. The government is providing $11 million to Hamilton, Cornwall, Brantford, St. Catharines and the University of Ottawa.
The government is announcing a comprehensive reform package that would, if passed, address the regulatory and liability barriers to brownfield redevelopment and help ensure that the public interest remains protected. The package includes:
- legislative reform proposals to address liability barriers to brownfield redevelopment for the Crown, municipalities, purchasers/developers and those engaged in site remediation work
- improved provincial oversight to support existing and new liability protection, including updating environmental standards, certification of Qualified Persons (such as engineers), and making technical amendments to the existing regulatory framework.
The government is committed to changing patterns of land development to support the redevelopment of brownfields. To date, initiatives to support brownfield redevelopment include removing provincial Crown liens on brownfield properties; providing tax relief through the Brownfields Financial Tax Incentive Program (BFTIP); establishing Brownfields Ontario; and providing funding to the Ontario Centres of Excellence, for the evaluation and testing of new brownfields remediation technology.
Water and Wastewater Infrastructure
Investing in drinking water and wastewater systems is essential to ensuring healthy, sustainable communities into the future. The government is providing support for municipalities in meeting their water and wastewater needs through initiatives such as Infrastructure Ontario’s OSIFA loan program, the Canada–Ontario Municipal Rural Infrastructure Fund (COMRIF) and the Rural Infrastructure Investment Initiative.
Ontario is also working with municipalities and other stakeholders to help ensure the long-term financial sustainability of drinking water and wastewater systems. See Section G: Investing in Ontario’s Infrastructure for further details.
Energy and Climate Change
Ontario remains committed to phasing out coal-fired electricity generation and replacing it with cleaner sources of energy. The Province’s comprehensive energy plan will achieve a healthy balance by moving away from coal in favour of conservation and greener forms of energy. When complete, the phase-out of coal-fired plants will represent a reduction of up to 30 million tonnes of GHG emissions, the single-largest reduction of emissions in Canada.
The Province is working with neighbouring U.S. jurisdictions to reduce transboundary air pollution. More than half of the Province’s air pollution comes from transboundary sources.
The government has also set targets that will double the installed capacity of renewable electricity generation by 2025.
The Energy Conservation Responsibility Act, passed in February 2006, facilitates the implementation of smart metering for residential and small business consumers across the province, which will help consumers better manage their energy costs.
Progress on Air Quality and
Climate Change
Ontario is making progress on GHG emissions. Over the past three years, generation from coal plants has fallen by about 30 per cent, representing a large reduction in GHG emissions — equivalent to the emissions from more than two million cars.
Ontario’s Conservation Bureau is leading the Province’s efforts to continue to build a culture of conservation and energy efficiency. Six of Ontario’s largest local electricity distribution companies work cooperatively with the government to deliver the powerWISE campaign, a multi-year initiative designed to promote energy conservation to consumers and reduce electricity demand.
Ontario is continuing to move forward on a potential investment to construct an East–West electrical transmission interconnection with Manitoba to allow for the importation of clean hydroelectric power.
As well, the new Ontario Building Code, which took effect on December 31, 2006, introduced the most energy-efficient building standards in Canada.
The government is providing $3 million to the Ontario Sustainable Energy Association (OSEA). The OSEA is a non-profit association of local organizations developing sustainable energy projects in and for their communities.
The government is also providing $150,000 to the Ontario School Bus Association. The Association is undertaking a pilot program to investigate training, education and technical means to reduce emissions from school buses in Ontario.
Waste Diversion
The Province has introduced several measures to increase waste diversion, including directing Waste Diversion Ontario to develop and fund diversion programs for household hazardous and special materials, and streamlining the approval requirements for converting certain types of waste into alternative fuels to keep it out of landfills and put it to beneficial uses. The government has also streamlined the approvals process for pilot or demonstration projects to encourage innovative waste technologies, such as energy-from-waste facilities.
Toronto, Windsor, Hamilton, Region of Peel, London and Quinte West are undertaking apartment recycling pilot projects. The government is providing $305,000 to these six municipalities.
The Recycling Council of Ontario is working to develop a zero waste toolkit for upcoming community information events, as well as encouraging the use of reusable plastic bags. The government is providing $325,000 to the Recycling Council.
Places to Grow
The population of the Greater Golden Horseshoe region in southern Ontario is expected to grow by approximately four million over the coming decades. Through the Places to Grow initiative, the government is committed to ensuring that this growth contributes to prosperous, healthy and diverse communities, which benefit all parts of the province.
The government’s Places to Grow: Growth Plan for the Greater Golden Horseshoe is a comprehensive 25-year strategy to maximize the benefits of growth and maintain Ontarians’ high quality of life. It is a plan to grow in a more complete way — so communities are good places to live, work, shop and play. It is a growth strategy that will create communities where it is easier for people to get around on foot, bike or transit.
The Growth Plan sets clear standards for growth and development, while giving local governments the flexibility they need to address local circumstances.
Leading by Example
The Ontario Government is reducing its own electricity consumption by 10 per cent through innovations such as deep lake-water cooling, extensive energy retrofits across the government’s real estate portfolio, and engaging the Province’s civil service in energy conservation initiatives.
The government has also asked Canadian astronaut and scientist Dr. Roberta Bondar to chair a working group that will review how the environment and conservation are being taught in elementary and secondary schools.
On December 19, 2006, the American Planning Association (APA) announced that the Growth Plan had won the Daniel Burnham Award, making it the first non-U.S. plan to win this prestigious award. This award is given to the plan that best illustrates progress, community benefit and contribution to the advancement of the planning profession. The APA is the pre-eminent professional planning organization in the United States, representing over 39,000 professional planners, officials and citizens.
Natural Resources Stewardship
Protecting Ontario’s Water
Ontario’s extensive networks of ground and surface waters are a significant part of Ontarians’ quality of life and the province’s economic prosperity.
Clean and safe drinking water is essential to daily life. Protecting it remains a top priority of the government. The government’s commitment to ensuring that Ontarians have safe clean drinking water is founded on the approach to drinking water protection embodied in the recommendations of Justice Dennis O’Connor’s Report of the Walkerton Inquiry. As a result of actions taken since the report was issued, a strong safety net of drinking water protection has been put in place — one that Ontarians can rely on.
The government is committed to fulfilling all of Justice O’Connor’s recommendations arising from the Walkerton Inquiry and is on track to meet all of the recommendations; so far, 87 of the total of 121 recommendations have been implemented and all others are underway.
Great Lakes
The government has been a leading champion of Great Lakes protection. In December 2005, Premier McGuinty signed the Great Lakes–St. Lawrence River Basin Sustainable Water Resources Agreement to prevent diversions and large removals of water from the Great Lakes Basin.
Under a proposal to renew the Canada–Ontario Agreement Respecting the Great Lakes Basin Ecosystem with the federal government, Ontario would invest more than $30 million to help restore and sustain the Great Lakes. The government will also prepare for new and emerging challenges as it fights climate change, invasive species and habitat destruction in the Great Lakes aquatic ecosystems.
Drinking Water Stewardship Program
Ontario a Leader on Drinking Water Protection
The Sierra Legal Defence Fund has ranked Ontario the leading jurisdiction in Canada in terms of protecting drinking water on the basis of its high treatment standards, containment standards, accredited labs for quality testing, operator certification and public reporting.Ontario will invest $7 million this year in its new Drinking Water Stewardship Program under the Clean Water Act. This will allow incentives for early action to protect drinking water sources across the province, and for outreach and education to help all Ontarians do their part to protect drinking water sources from contamination. The government will invest another $21 million for the following three years in the Drinking Water Stewardship Program.
The Province has also committed $120 million from 2004 to 2008 to fund source water protection planning to protect drinking water sources across the province.
The government supports the public’s right to know about their drinking water systems. Its Drinking Water Portal provides, for the first time, a single user-friendly point of access to all critical drinking water information.
Natural Spaces and Resources
Ontario is blessed with some of the most enviable natural resources, forests, farmland and green spaces in North America. The Province is committed to working with municipalities and others to protect this rich natural heritage and economic resource.
The government is providing $2 million to the Rouge Park Alliance. The Alliance works to protect, restore and enhance the natural, scenic and cultural values of the park in an ecosystem context, and to promote public responsibility, understanding, appreciation and enjoyment of this heritage.
The government will propose amendments to the Niagara Escarpment Planning and Development Act to allow better enforcement of the restrictions in the statute, further ensuring that development on the Niagara Escarpment is compatible with the natural environment.
In 2005, the government also launched the Natural Spaces Program, which recognizes the need to restore and protect natural areas across southern Ontario.
Biodiversity
Over the past year, the government has taken action on biodiversity by regulating new parks and conservation reserves, supporting natural heritage protection, launching an update of the Province’s species-at-risk legislation, and working to protect and restore many fish and wildlife species.
Progress on Protecting Ontario’s Natural Heritage
Today, Ontario’s vast system of parks and protected areas totals 9.5 million hectares, and includes areas of magnificent old-growth forest, woodland caribou ranges, wilderness rivers, wetlands, and habitat for rare and endangered plants and animals.
In 2005, about 3.0 million tonnes of municipal and industrial, commercial and institutional waste were diverted through the 3Rs (reduce, reuse and recycle) program.
Greenbelt
The Greenbelt Act, 2005 enabled the creation of a Greenbelt Plan to protect from urban sprawl about 1.8 million acres of environmentally sensitive and agricultural land in the Greater Golden Horseshoe. The Greenbelt extends 325 kilometres from the eastern end of the Oak Ridges Moraine, near Rice Lake, in the east, to the Niagara River in the west. It includes 800,000 acres of land protected by the Niagara Escarpment Plan and Oak Ridges Moraine Conservation Plan.
The Greenbelt is a key part of the government’s commitment to environmental protection. It permanently helps to protect the water Ontarians drink and the air they breathe as well as some of Ontario’s most valuable green spaces, farmland, forests, wetlands and watersheds. It also means that farmers can continue to grow food closer to home. Ontarians and visitors alike enjoy the Greenbelt’s many recreation opportunities, including its trails and parklands.
The Province also provided $25 million to the Friends of the Greenbelt Foundation, which is a not-for-profit organization that coordinates and funds activities such as the promotion of agriculture and viniculture, research, public education, land stewardship and land acquisition across the Greenbelt.
Looking Ahead
While solid progress has been made on the environment, the Province recognizes that it needs to continue its work to sustain the high quality of life that Ontarians enjoy. This spring, the government will present a plan to establish a greener economy in Ontario, which addresses air quality and climate change.