- I am licensed to drill water wells. Does this new/amended regulation apply to me?
- Why doesn’t the new regulation apply to anyone drilling water wells at the same depth?
- Do I need an Environmental Compliance Approval for every vertical closed loop geothermal system I install?
- Can an industry association apply for an Environmental Compliance Approval on behalf of the drilling industry?
- I sell and provide all services for geothermal systems to clients but I sub-contract the drilling and installation of the geothermal systems to third party companies. Am I required to get the Environmental Compliance Approval? Are the well driller and the installer of the unit each required to obtain an Environmental Compliance Approval? Is the person responsible for complying with the regulation?
- How do I get an Environmental Compliance Approval for my closed loop system?
- How long will it take for the approval to be issued?
- What is the ministry doing to reduce the cost burden on industry?
- How much will an approval cost?
- What is the penalty for not complying with these new rules?
I am licensed to drill water wells. Does this new and amended regulation apply to me?
The new regulation, effective May 18, 2012, applies to installers of vertical closed loop geothermal systems.
Why doesn’t the new regulation apply to anyone drilling water wells at the same depth?
Natural hazardous gas may be encountered while drilling any hole.
Section 15 of the Environmental Protection Act requires all drillers to immediately report an incident of this type to the ministry. This requirement remains in place and has not changed.
Prior to the new regulation, installers of vertical closed loop geothermal systems were not subject to the same licensing or approval requirements as installers of open loop geothermal systems. These installers must have a license under the Ontario Water Resources Act.
The drilling of open loop geothermal systems is already subject to the requirements for closed loop systems under Ontario Regulation 98/12. Requirements for open loop systems include complying with the Wells Regulation, which sets out requirements for licensing of contractors and drillers, as well as requirements for the construction, maintenance and decommissioning of wells.
The Wells Regulation also regulates the management of natural gas hazards and prescribes notification requirements. An Environmental Compliance Approval is required for wastewater discharges from the systems. If appropriate, a Permit to Take Water under the Ontario Water Resources Act may also be required. Ontario Regulation 98/12 includes similar provisions for installers of vertical closed loop systems.
Do I need an individual site-specific Environmental Compliance Approval for every vertical closed loop geothermal system I install?
You do not necessarily need to obtain approval for every vertical closed loop geothermal system.
A one-time Environmental Compliance Approval can be obtained for multiple sites and includes a work plan that has, as a minimum, requirements to address the potential to encounter hazardous gas.
The Environmental Compliance Approval could be used for installations across the province and could be in place for a number of years.
Can an industry association apply for an Environmental Compliance Approval on behalf of the drilling industry?
An association cannot apply on behalf of the drilling industry. The Environmental Compliance Approval can be held by either the installer or a driller. At least one of these individuals must have the Environmental Compliance Approval before drilling any holes for a system installation. This person is then responsible for fulfilling the requirements of Ontario Regulation 98/12 and the Environmental Compliance Approval.
I sell and provide all services for geothermal systems to clients but I sub-contract the drilling and installation to third-party companies. Who is responsible for obtaining the Environmental Compliance Approval and complying with the regulation?
The Environmental Compliance Approval can be held by either the installer or a driller, but at least one of them must have the Environmental Compliance Approval before drilling any holes for a system installation. This person is then responsible for fulfilling the requirements of the regulation and the Environmental Compliance Approval for that system
How do I get an Environmental Compliance Approval for installing a closed loop system?
- Environmental Compliance Approval (ECA) application, vertical closed loop ground source heat pumps
- Instructions for Completing an ECA, vertical closed loop ground source heat pumps
For further information on the Environmental Compliance Approvals process, please contact the Environmental Approvals Access and Service Integration Branch at 416-314-8001 or at EAABgen.moe@ontario.ca.
How long will it take for the approval to be issued?
The ministry is committed to issuing the approval as quickly as possible. Review time will vary according to the quality of the application. Applications are required to be posted on the Environmental Bill of Rights Registry site for a minimum of 45 days, as required in the regulation. Approvals are issued once the public comments are reviewed and addressed.
What is the ministry doing to reduce the cost burden on industry?
The ministry’s immediate concern is the protection of the environment and public safety. There is potential harm to both human health and the environment from contact with natural gas without the necessary risk management measures in place.
By allowing for a multi-site approval as opposed to a site-specific approval, we are minimizing the cost burden on the installers who are subject to the new approval.
Projects under construction that have one or more holes drilled for a vertical closed loop system prior to May 18, 2012 are exempt from obtaining an approval. However, the installer still needs to take action if they encounter natural gas, managing it to remove a potential hazard, decommissioning the system if necessary and reporting it to the proper authorities.
These measures are an interim step while the ministry assesses what, if any, longer-term measures are needed. The ministry will consult with industry, stakeholders and community experts on longer term solutions.
How much will an approval cost?
The application fee for these Environmental Compliance Approvals is $1,200, plus a $200 administration fee.
The applicant also will be responsible for the cost of retaining a consultant to prepare the work plan required for the Environmental Compliance Approval application.
What is the penalty for not complying with these new rules?
The ministry assesses each reported incident to the ministry on a case-by-case basis. Where it is warranted, the ministry has a variety of compliance and enforcement tools available to ensure the new rules are being respected.
We are working collaboratively with ministry partners, industry and stakeholders to conduct outreach and consultation activities to ensure that geothermal systems in Ontario are safe for local communities and the environment.