Canada: New Energy And Water Consumption Reporting To Be Phased In For Large Buildings

On February 6, 2017, Ontario Regulation 20/17 (the "Regulation") was filed under the Green Energy Act, 2009 (the "Act"). The Regulation follows the Ministry of Energy's (the "Ministry") Large Building Energy and Water Reporting and Benchmarking proposal (the "Proposal") dated February 25, 2016, in which the Ministry proposed to implement an Energy and Water Reporting and Benchmarking regulatory requirement as a means of monitoring large buildings' energy and water consumption on an ongoing basis to determine how this consumption is changing over time and in comparison to other similar buildings.

The Regulation, which comes into force on July 1, 2017, is of interest to all owners of commercial and multi-unit residential buildings over 50,000 square feet and over 10 units (in the case of multi-residential buildings), including condominium corporations, as well as a limited number of industrial buildings. Owners of qualifying buildings will be required to report to the Ministry, on an annual basis, identifying information in respect of the property, including the  gross floor area of the property and information relating to energy and water consumption and performance data, and verify these reports if requested to do so by the Minister of Energy (the "Minister").

The Regulation is also of interest to electricity, natural gas and water distributors, who will be required to provide owners of qualifying buildings with aggregated information as to how much electricity, natural gas or water, as applicable, was used at the building during the reporting period. This includes information for reporting periods during which the current owner did not own the property.

The reporting requirement will be phased-in gradually, over a three-year period, with the first reports due July 1, 2018.

Background

The Province of Ontario, in the 2013 Long Term Energy Plan, committed to putting conservation first, focusing on rate mitigation over major investments in generation or transmission and pursuing lower-cost options to meet energy needs. In its 2013 publication Conservation First: A Renewed Vision for Energy Conservation in Ontario, the Province further noted that rating systems for buildings could allow consumers to benchmark the relative energy efficiency of various properties and inform their investment decisions.

In the Proposal, the Ministry pointed to large building owners as being in a position to play an important role in helping Ontario meet its conservation and greenhouse gas ("GHG") reduction objectives, citing that buildings were responsible for 19% of Ontario's total GHG emissions in 2013. The Proposal stated that measures are needed to improve the efficiency of existing buildings but building owners must first understand energy and water usage levels and track performance to identify what improvements can be made. The Proposal suggested reporting and disclosure as a low-cost market-based tool to help overcome these barriers.

Overview of the Regulation

Who is caught?

The Regulation applies to owners of real property, including condominium corporations governed by the Condominium Act, 1998, where:

  • the building has a gross floor area of at least 50,000 square feet;
  • electricity consumption information is available from the local distributor for the building as a whole,
  • natural gas consumption information (if natural gas is consumed) is available from the local distributor for the building as a whole,
  • the property on which the building is situated is included in the list of codes in the Municipal Property Assessment Corporation's Ontario's Large Building Energy and Water Reporting and Benchmarking Requirement: Building Types (the "MPAC Building Types List"), and
  • in the case of multi-residential buildings, the building contains more than 10 units (a "Prescribed Property").

A Prescribed Property includes two or more buildings where electricity or natural gas, if applicable, is not separately metered for each of the buildings, the buildings have a combined gross floor area of at least 50,000 square feet, the property on which each building is situated is included in the list of codes in the MPAC Building Types List , and, for multi-unit residential buildings, the buildings contain a combined total of more than 10 units.

Where there are two owners of a Prescribed Property, they are jointly responsible for the reporting requirements for that Prescribed Property.

The Regulation exempts from the reporting requirements corporations that perform public functions1 and owners of property, any part of which is subject to the Ontario Cap and Trade program reporting requirements, as well as the following property owners:

  1. 50% or more of the property's gross floor area is occupied by a public agency2;
  2. 10% or more of the property's gross floor area functions as a data centre, television studio or trading floor; and
  3. 10% or more of the property's gross floor area is used for manufacturing, commercial, agricultural or industrial processing.

An owner of a property to which exemptions 1, 2, or 3 above apply must provide the Ministry with written notice and proof of eligibility to be eligible for the exemption.

What are the requirements?

1. Annual Reporting

The owner of a Prescribed Property must report to the Ministry identifying information in respect of the property, including the  gross floor area of the property and information relating to energy and water consumption and performance data, as set out in Ontario's Large Building Energy and Water Reporting and Benchmarking Requirement: Data Elements.

Reporting is to take place through the ENERGY STAR Portfolio Manager electronic reporting system, administered by Natural Resources Canada. For a Prescribed Property containing two or more buildings, information is to be reported on an aggregated basis.

2. Data Verification

The Minister may request an individual who is required to report information in respect of a Prescribed Property with a gross floor area of at least 100,000 square feet to have the information verified by a qualified person before it is reported.

3. Sharing of Information

The Regulation allows the Minister to share information reported under the Regulation with public agencies and certain entities performing a public function.

4. Distributors to Provide Information

Electricity, natural gas and water distributors will be required to provide the owner of a Prescribed Property who is required to report under the Regulation, upon request, with aggregated information as to how much electricity, natural gas or water, as applicable, was used at the Prescribed Property during that year, including for periods during which the owner did not own the Prescribed Property.

When does the reporting requirement commence?

The requirement to report will be phased in over a three-year period.

Owners required to report must do so annually, for each calendar year, by July 1 of the following year. The first year in which the requirement to report applies is:

  • 2018 (information for 2017), for property that is at least 250,000 square feet, other than a multi-unit residential property;
  • 2019 (information for 2018), for any other property that is at least 100,000 square feet;
  • 2020 (information for 2019), for a property that is between 50,000 to 100,000 square feet.

Owners of newly constructed property and property that is less than 50% occupied during a year can apply to the Ministry to be exempted from the reporting requirements for that year.

Footnotes

1 The corporation must meet the following criteria: (i) be established under an Act, (ii) be accountable to the Government of Ontario, (iii) have the majority of its governing body appointed by the Lieutenant Governor in Council, a minister of a ministry of the Government of Ontario or both, (iv) a power, function or duty of a minister of a ministry of the Government of Ontario under an Act has been assigned or delegated to it, and (v) it is authorized or required, under an Act, to perform a public function or to offer a public service.

2 Pursuant to the Act, "public agency" means a ministry of the Government of Ontario or an entity, including a municipality, or class of entities that is prescribed as a public agency.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Willms & Shier Environmental Lawyers LLP
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Willms & Shier Environmental Lawyers LLP
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions