Bill 155, Sustainable Water and Sewage Systems Act, 2001

Young, Hon. David Minister of Municipal Affairs and Housing

Versions

Original

[37] Bill 155 Original (PDF)

Bill 155 2001

An Act respecting
the cost of water
and waste water services

CONTENTS

Interpretation and Application

Definitions

Designation of regulated entities

Report on Full cost of Services

Report on full cost of water services

Report on full cost of waste water services

Joint reports

Report prepared by Minister

Approval of report

Effect of approval of report

Cost Recovery Plan

10.

11.

12.

13.

14.

Cost recovery plan for water services

Cost recovery plan for waste water services

Joint plans

Plan prepared by Minister

Approval of plan

Effect of approval of plan

Other Reporting
Requirements

15.

16.

Periodic reports to the Minister

Inspection and audit

Revisions to Reports and Plans

17.

18.

19.

Revised report to Minister

Revised cost recovery plan

Approvals

Enforcement

20.

21.

Extension of deadlines

Minister's orders

General

22.

23.

24.

25.

26.

Financial management

Delegation

Regulations

Commencement

Short title

______________

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Interpretation and Application

Definitions

1. (1) In this Act,

"approved cost recovery plan" means a plan whose contents are approved by the Minister under section 13 or 19; ("plan de recouvrement des coûts approuvé")

"Minister" means the Minister of Municipal Affairs and Housing or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; ("ministre")

"regulated entity" means a person or entity designated by regulation under section 2. ("entité réglementée")

Provision of water services

(2) The provision of water services to the public includes extracting, treating and distributing water.

Provision of waste water services

(3) The provision of waste water services to the public includes collecting, treating and discharging waste water.

Designation of regulated entities

2. This Act applies to those persons and entities that provide water services or waste water services to the public and that are designated by regulation as regulated entities.

Report on Full Cost of Services

Report on full cost of water services

3. (1) Every regulated entity that provides water services to the public shall give a written report about those services to the Minister before the date specified by regulation.

Contents

(2) The report must contain such information as is required by regulation concerning the infrastructure needed to provide the water services, the full cost of providing the services and the revenue obtained to provide them and concerning such other matters as may be specified in the regulation.

Form

(3) The report must be made in a form approved by the Minister.

Components of full cost

(4) The full cost of providing the water services includes the operating costs, financing costs, renewal and replacement costs and improvement costs associated with extracting, treating or distributing water to the public and such other costs as may be specified by regulation.

Report on full cost of waste water services

4. (1) Every regulated entity that provides waste water services to the public shall give a written report about those services to the Minister before the date specified by regulation.

Contents

(2) The report must contain such information as is required by regulation concerning the infrastructure needed to provide the waste water services, the full cost of providing the services and the revenue obtained to provide them and concerning such other matters as may be specified in the regulation.

Form

(3) The report must be made in a form approved by the Minister.

Components of full cost

(4) The full cost of providing the waste water services includes the operating costs, financing costs, renewal and replacement costs and improvement costs associated with collecting, treating or discharging waste water and such other costs as may be specified by regulation.

Joint reports

5. (1) The Minister may direct two or more regulated entities to prepare a joint report under subsection 3 (1) or 4 (1) if the Minister considers it appropriate to do so.

Same

(2) The Minister may specify that the joint report is required in lieu of, or in addition to, a report from each of the regulated entities under subsection 3 (1) or 4 (1).

Same

(3) This Act applies, with necessary modifications, with respect to a joint report as if it were a report by a single regulated entity.

Report prepared by Minister

6. (1) The Minister may prepare a report on behalf of a regulated entity if the Minister considers it appropriate to do so.

Same

(2) The regulated entity shall reimburse the Crown for the costs incurred by the Minister in connection with the preparation of the report, in the amount determined by the Minister and within the period specified by the Minister.

Same

(3) If the Minister prepares a report on behalf of a regulated entity, the entity is not required to give a report to the Minister under subsection 3 (1) or 4 (1).

Approval of report

7. (1) The Minister may approve the contents of the report of a regulated entity or may require the entity to make specified changes to the report before approving it.

Same

(2) If the Minister requires a regulated entity to make specified changes to a report, the entity shall make the changes within the period specified by the Minister and then shall give the Minister the revised report.

Deemed approval

(3) The Minister shall be deemed to have approved the contents of a report prepared by the Minister.

Effect of approval of report

8. When the Minister approves the contents of the report of a regulated entity, the estimate of the full cost of providing water services or waste water services that is set out in the report shall be deemed, for the purposes of this Act, to be the full cost of providing those services.

Cost Recovery Plan

Cost recovery plan
for water services

9. (1) Every regulated entity that provides water services to the public shall prepare a plan describing how the entity intends to pay the full cost of providing those services.

Contents

(2) The plan must meet the requirements of this Act and the regulations.

Form

(3) The plan must be made in a form approved by the Minister.

Sources of revenue

(4) The regulations may specify those sources of revenue that a regulated entity is, or is not, permitted to include in the plan and may impose conditions or restrictions with respect to different sources of revenue.

Restriction

(5) The regulations may specify the maximum amount by which a regulated entity may increase the charges for the provision of the water services for any customer or class of customer over any period of time.

Submission

(6) The regulated entity shall give the plan to the Minister no later than six months after the Minister approves the report under section 7 or gives the regulated entity the report prepared by the Minister under section 6.

Cost recovery plan for waste water services

10. (1) Every regulated entity that provides waste water services to the public shall prepare a plan describing how the entity intends to pay the full cost of providing those services.

Contents

(2) The plan must meet the requirements of this Act and the regulations.

Form

(3) The plan must be made in a form approved by the Minister.

Sources of revenue

Restriction

(5) The regulations may specify the maximum amount by which a regulated entity may increase the charges for the provision of the waste water services for any customer or class of customer over any period of time.

Submission

Joint plans

11. (1) The Minister may direct two or more regulated entities to prepare a joint plan under section 9 or 10 if the Minister considers it appropriate to do so.

Same

(2) The Minister may specify that the joint plan is required in lieu of, or in addition to, a plan from each of the regulated entities under section 9 or 10.

Same

(3) This Act applies, with necessary modifications, with respect to a joint plan as if it were a plan of a single regulated entity.

Plan prepared by Minister

12. (1) The Minister may prepare a plan on behalf of a regulated entity if the Minister considers it appropriate to do so.

Same

(2) The regulated entity shall reimburse the Crown for the costs incurred by the Minister in connection with the preparation of the plan, in the amount determined by the Minister and within the period specified by the Minister.

Same

(3) If the Minister prepares a plan on behalf of a regulated entity, the entity is not required to give the Minister a plan under section 9 or 10.

Approval of plan

13. (1) The Minister may approve the contents of the plan of a regulated entity or may require the entity to make specified changes to the plan before approving it.

Same

(2) If the Minister requires a regulated entity to make specified changes to a plan, the entity shall make the changes within the period specified by the Minister and then shall give the Minister the revised plan.

Deemed approval

(3) The Minister shall be deemed to have approved the contents of a plan prepared by the Minister.

Effect of approval of plan

14. A regulated entity shall implement its approved cost recovery plan and shall do so no later than the date specified by regulation.

Other Reporting
Requirements

Periodic reports to the Minister

15. (1) Every regulated entity shall give the Minister progress reports, at such intervals as may be prescribed by regulation, concerning the implementation of its approved cost recovery plan.

Contents

(2) Each report must contain the information required by regulation.

Form

(3) Each report must be made in a form approved by the Minister.

Other information

(4) Every regulated entity shall give the Minister such information as the Minister may request concerning the provision of water services and waste water services to the public and shall do so within the period specified by the Minister.

Inspection and audit

16. Upon request, every regulated entity shall promptly make its records concerning the provision of water services and waste water services to the public available to the Minister for inspection and audit.

Revisions to Reports and Plans

Revised report to Minister

17. (1) A regulated entity shall prepare a revised report setting out its estimate of the full cost of providing water services or waste water services to the public,

(a) if the entity has reasonable grounds to believe that the estimate does not reflect the full cost of providing the services, as a result of a change in circumstances;

(b) if, as a result of a change in circumstances, any other information in the report needs to be updated or corrected;

(d) if the Minister directs the entity to revise its report or to make specified changes to the report.

Same

(2) The regulated entity shall give the revised report to the Minister within the period specified in the regulations.

Same

(3) Sections 3 to 6, 20 and 21 apply, with necessary modifications, with respect to the revised report.

Revised cost recovery plan

18. (1) A regulated entity shall prepare a revised plan describing how the entity intends to pay the full cost of providing water services or waste water services to the public,

(a) if the entity is required to revise its estimate of the full cost of providing the services;

(b) if, as a result of a change in circumstances, the plan needs to be changed;

(d) if the Minister directs the entity to revise the plan or to make specified changes to the plan.

Same

(2) The regulated entity shall give the revised plan to the Minister within the period specified in the regulations.

Same

(3) Sections 9 to 12, 20 and 21 apply, with necessary modifications, with respect to the revised plan.

Approvals

19. (1) Sections 7 and 8 apply, with necessary modifications, with respect to a revised report.

Same

(2) Sections 13 and 14 apply, with necessary modifications, with respect to a revised plan.

Enforcement

Extension of deadlines

20. (1) The Minister may, by order, extend the deadline by which a regulated entity is required to submit a report under subsection 3 (1) or 4 (1) and may make the order before or after the deadline under the applicable subsection has passed.

Same

(2) An extension under subsection (1) cannot extend beyond six months after the deadline specified in subsection 3 (1) or 4 (1), whichever applies.

Same, cost recovery plan

(3) Upon request, the Minister may extend the deadline by which a regulated entity is required to submit a cost recovery plan under subsection 9 (6) or 10 (6).

Minister's orders

21. (1) This section applies if, in the opinion of the Minister, any of the following circumstances exist:

1. A regulated entity is not implementing its approved cost recovery plan.

2. A regulated entity is not taking all necessary steps to pay the full cost of providing water services or waste water services, as the case may be, to the public.

Same

(2) The Minister may order a regulated entity to do or refrain from doing such things as the Minister considers advisable to ensure that the entity pays the full cost of providing water services or waste water services, as the case may be, to the public.

Same

(3) Without limiting the generality of subsection (2), an order may require the regulated entity to generate revenue in a specified manner or from a specified source to pay all or part of the cost of providing the services and to make specified or necessary amendments to existing contracts, resolutions or by-laws.

General

Financial management

22. Every regulated entity shall establish and maintain a dedicated reserve account that segregate from its general revenues the revenue allocated in its approved cost recovery plan to pay the full cost (including operating and capital costs) of providing water services or waste water services, and shall do so in accordance with the regulations.

Delegation

23. The Minister may, in writing, delegate any of his or her powers or duties under this Act (including the power to give directions and make orders) to any person or entity, subject to such conditions or restrictions as the Minister considers appropriate.

Regulations

24. (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing those things that are required or permitted by this Act to be prescribed or done by regulation;

(b) exempting a regulated entity from any requirement of this Act or a regulation, subject to such conditions or restrictions as may be prescribed;

(c) prescribing accounting standards and rules to be used in connection with the preparation of any report or plan required under this Act.

Scope of regulations

(2) A regulation may be general or particular in its application.

Classes

(3) A regulation may create different classes and may impose different requirements, conditions or restrictions on or relating to each class.

Commencement

25. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

26. The short title of this Act is the Sustainable Water and Sewage Systems Act, 2001.

EXPLANATORY NOTE

The Bill establishes a new Act, the Sustainable Water and Sewage Systems Act, 2001. This Act applies to those persons and entities designated in the regulations who provide water services to the public or waste water services to the public. In the Act, they are called "regulated entities".

Regulated entities are required to give a report to the Minister of Municipal Affairs and Housing concerning the provision of water services and waste water services. The report must include information specified by regulation about the infrastructure needed to provide the services, the full cost of providing the services and the revenue obtained to provide them. The regulations may also specify additional matters to be addressed in the report.

The Act specifies that the full cost of providing services includes operating costs, financing costs, renewal and replacement costs and improvement costs. The full cost may also include other costs specified in the regulations.

The Minister may approve each report, and may require changes to a report before approving it. The Minister is also authorized to prepare a report on behalf of a regulated entity, and the entity is required to reimburse the Crown for the costs incurred by the Minister in doing so.

After the report is approved, each regulated entity is required to prepare a cost recovery plan describing how it intends to pay the full cost of providing the services. The contents of the plan must meet the requirements set out in the regulations. The regulations may specify the sources of revenue that a regulated entity is, or is not, permitted to use in the plan. The regulations may also specify the maximum amount of any increase in the amounts payable by customers.

The Minister may approve each cost recovery plan, and may require changes to a plan before approving it. The Minister is also authorized to prepare a cost recovery plan on behalf of a regulated entity, and the entity is required to reimburse the Crown for the costs incurred by the Minister in doing so.

Once a cost recovery plan is approved, the regulated entity is required to implement it no later than the date specified by regulation.

Provision is made for amendments to reports and plans, and for the preparation of joint reports and plans by two or more regulated entities.

The Minister is authorized to make orders requiring regulated entities to do, or refrain from doing, such things as the Minister specifies in order to ensure that the entity pays the full cost of providing the services.