Ontario Regulation 450/07
In August 2007, the government filed O. Reg. 450/07, under the Ontario Water Resources Act. The regulation establishes a charge of $3.71 for every million litres of water used by highly consumptive industrial and commercial water users (referred to as phase one industrial or commercial water users).
Money collected from the charge will be used to cover a portion of the provincial government’s costs of water management activities and programs such as preparing water budgets, monitoring, and controlling takings and impacts.
Phase one industrial or commercial water users
The charge only applies to water users who meet ALL of the following criteria:
- withdraw more than 50,000 litres on any single day in a year;
- withdraw water from a water works (e.g. a municipal water works) OR
- withdraw water directly from a groundwater or surface water source and are required to hold a permit to take water (PTTW);
- use water for commercial or industrial purposes and fall into one of the following classes of industrial and commercial facilities:
- Facilities that manufacture or produce bottled water or water in other containers, whether or not for use as a beverage.
- Beverage manufacturing facilities, where water is incorporated into a product.
- Fruit and vegetable canning or pickling facilities, where water is incorporated into a product.
- Ready-mix concrete manufacturing facilities.
- Non-metallic mineral product manufacturing facilities, other than those facilities described in paragraph 4, where water is incorporated into a product.
- Pesticide, fertilizer and other agricultural chemical manufacturing facilities, where water is incorporated into a product.
- Inorganic chemical manufacturing facilities, other than those described in paragraph 6, where water is incorporated into a product.
Implementation of O. Reg. 450/07
The charge will apply to the total volume of water withdrawn annually by a phase one industrial and commercial water user, starting January 1, 2009. In 2010, phase one industrial and commercial water users will receive an invoice from the Ministry based on the total amount of water withdrawn by the facility in the 2009 calendar year. The information provided by the owners or operators of communal water works under section 5 of the Regulation (for phase one users on drawing water from a water works) and by the phase one industrial and commercial water users under section 4 of the Regulation (for permit holders) will allow the Ministry to calculate the amount of the total charge (annual volume of water withdrawn x $3.71 per million litres) for each phase one industrial and commercial water user. The Government will invoice and collect the charge directly from the phase one industrial or commercial water user. The information will also allow the Director to prepare a list of phase one industrial or commercial water users subject to the Regulation which must be completed by December 31, 2008.
Reporting Requirements under O. Reg. 450/07
Section 4 of O. Reg. 450/07, requires the owner of a facility that is a phase one industrial or commercial water user to report the specified information to the Ministry on or before June 30, 2008. Please note: the report under section 4 of O. Reg. 450/07 is required only once.
Specifically, the owner is required to report the following information:
- The address of the facility.
- Contact information for the facility, including the name and title of the person who should be contacted in respect of matters under O. Reg. 450/07.
- The class of facility according to section 3 (1) of the regulation to which the facility belongs and a description of how the water is used.
- The names of the owner of the facility.
- The number of the facility’s water taking permit, if the facility is a water taker and has a water taking permit.
- The method the facility uses to measure the amount of water it uses.
- If a water works not owned by the owner of the facility supplies water directly or indirectly to the facility,
- the name of the owner of the water works, and
- the account number that the owner of the water works uses to charge the facility for its water use.
The Ministry Director may also request the owner of a facility to supply additional information as the Director may specify in writing to assist in determining whether the facility is a phase one industrial or commercial water user, and the amount of water the facility used in a calendar year or other 12-month period.
Please refer to the Technical Bulletin: “Reporting Requirements for Phase One Industrial or Commercial Water Users under Section 4 of Ontario Regulation 450/07: Charges for Industrial and Commercial Water Users” for details on how to report. This bulletin is available from the Ministry’s website.